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How To Fix Our Broken Health Care System
The Republican Party of Orange County regularly solicits the views and news of the state and federal delegation. Please read this week's Op-Ed by California State Senator Tom Harman
California’s health care system is broken and dysfunctional. Recent studies estimate that 6 million California residents don’t have health care coverage. The cost of health insurance has skyrocketed in recent years, with the average family paying about $2,824 a year in health insurance premiums. By the way, did you know that included in those premium payments is a "hidden tax" that is used to subsidize the cost of paying for the health care needs of illegal immigrants? That’s not right and it is one of the main reasons why health care for California residents is so expensive.
In order to put the pieces back together, we need to adopt a fiscally-responsible approach. We don’t need new taxes or ‘fees’ to be placed on the backs of California businesses. Already, our state is ranked as the second-worst small business-friendly state in the nation. Increasing costly health care mandates will only make doing business in California less and less attractive.
The goal of having all legal California residents receive health care is not a bad idea, but there is a right and wrong approach. I am glad that the Governor included in his health care plan certain proposals that I have supported in the past, including: investment in health care technology; the streamlining of government regulations and the expanded use of community clinics.
So what is the key to solving California’s health care crisis? Requiring everyone to pay their fair share should also be part of any approved plan. It is unfair for those that do pay for their own health care to also have to subsidize those who refuse to obtain coverage when they can easily afford it. There are nearly one million Californians in this category. Typically this is a younger person, in the range of 30 years of age, that has a good job and is making upwards of $50,000 per year. Often times these individuals, because of their age and medical history, simply believe they will never get sick or need emergency medical treatment. When it happens, their medical treatment is free and the rest of us have to pick up the tab in the form of higher health insurance premiums. That’s the "hidden tax" mentioned earlier.
Like the Governor, I welcome free market reforms like Health Savings Accounts (HSAs), which will make coverage more affordable for workers and small business owners. To help individuals and families who work for small businesses fund their Health Savings Accounts, I am introducing legislation this year to give small business owners a tax credit on HSA contributions for the first $500 per worker with family coverage and the first $200 per worker with individual coverage.
HSAs help mitigate our skyrocketing health care costs by allowing taxpayers to use pre-tax dollars to pay for them. It is a shame that the Legislature, in the past few years, has passed numerous new laws that drive up health care costs, yet at the same time does little to help taxpayers pay for these increases. Providing a tax credit for employer contributions to HSAs would make health care more affordable for working families, as well as provide employer incentives to expand enrollment.
The bottom line is that California needs a plan that is less expensive, increases access to health care coverage, requires everyone to pay their fair share, and at the same time reduces the burdensome mandates that unnecessarily drive up the cost of health care to its legal citizens.
Senator Harman represents the cities of Seal Beach, Huntington Beach, Fountain Valley, Costa Mesa, Newport Beach, Irvine, Cypress, La Palma, Los Alamitos, Laguna Beach and Dana Point. Any essays, opinion-editorials, press-releases or news item contained herein is the expressed view of the author and not necessarily of The Republican Party of Orange County (also known as OCGOP.org). OCGOP.org should not be held accountable or responsible for the content associated with these writings. The literature that is provided to you, the user, is for your convenience, entertainment and education and are not to be seen as endorsed by OCGOP.org for any products, services or views promoted by said author.
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