New bill would put state in charge of setting California health care prices

MedizinAssemblyman Ash Kalra, D-San Jose, has introduced a new bill that would put California in charge of setting prices for hospital visits, trips to the doctor and other medical services.

Under the legislative proposal, the state would create an independent agency that would set prices for the health care market – prices that would be based off the current pricing structure for Medicare.

However, there would be a process for hospitals to appeal and argue that certain procedures require a higher rate.

“By building upon existing models, we can establish a transparent process by which increases in health care costs can be kept reasonable while also expanding access to care,” Kalra said at a Monday press conference.

Proponents of Assembly Bill 3087, including major labor groups, argue that it would help control rising health care costs and give consumers more predictability in assessing health care pricing, while opponents, like doctors and hospitals, maintain that it risks decreasing the quality of care and would cause physicians to leave the state.

“No state in America has ever attempted such an unproven policy of inflexible, government-managed price caps across every health care service,” said California Medical Association President Theodore M. Mazer said in a statement. “It threatens to reverse the historic gains for health coverage and access made in California since the passage of the Affordable Care Act.”

California spends about $8,000 per capita on health care every year, totaling around $300 billion, according to the California Health Care Foundation, and it’s a cost that is affecting everything from the state budget, business’s bottom lines and employee paychecks.

“Medical monopolies are the only ones who benefit from skyrocketing prices; the rest of us are paying the price because we have no choice,” Roxanne Sanchez, President of SEIU Local 1021 and SEIU California, said in a statement supporting the bill posted on

But the overarching concern is that state officials would be making decisions on behalf of patients – raising concerns about rationing, a lower quality of care and longer wait times.

Additionally, the proposal is also being opposed by progressives in support of single-payer, seeing the legislation as just making a dent in a larger problem that needs complete overhaul.

More broadly, it’s just the latest effort to overhaul the Golden State’s health care system. Last March, state Sen. Ricardo Lara, D-Bell Gardens, introduced a bill to create a single-payer model, but the plan stalled in Sacramento after there were few details laid out on how to pay for the “Medicare for all” system.

This article was originally published by


  1. Donald J. says

    8,000.00 per year per capita for health care? Are you saying that is for every man, women and child in the State? or is that the figure for those on the system and illegals? Since only about 40% of the population pays taxes that’s an overwhelming burden but on the other hand just living under the Progressive/Socialist out of control California Left Wing political climate is taxing!

  2. these people are nuts. another bullet train. it will end up costing me more. call your rep now! i did, he’s a _ urd

  3. Mr. Pickle says

    Uh Oh! Another Agency??? Why is it that when CA State gets involved, it costs more, service goes down, is always more complicated, and works about as good as Cal Trans. No thanks. KILL THIS BILL, DOA………. Oh, I forgot. We have a 6 Billion surplus, so now I know where that surplus is going……. Another Bay Area Dem liberal figuring out a way to help us go broke…………

  4. Victoria Smith says

    Government has laid waste everything they have taken control of, which was not in their Constitutional authority….Post Office, banking, education, medical care…

  5. Just another way to make working families pay for free healthcare for illegals and druggies. After 50 years, im getting outta here ASAP!

  6. Brenda Torres says

    The Liberal Socialist’s goal is “Single Payer” HealthCare…You know…We pay, they receive…

  7. Perhaps we could just go back to paying cash, or barter, to Doctors…..
    who knows, they might start making house-calls again.
    As the 20th-Century has shown us, the more government is involved in the delivery of health-care, the more it costs, and the less effective it is.
    People will die from neglect because they won’t be able to pay the vig.

  8. Democracy = Socialism = Communism. What will the Democrat-majority legislature propose next?

Speak Your Mind