INFO ALERT – Update on Senate Bill 562, The Healthy California Act

Here are the major highlights:

• Senate Bill 562 passed without specifying how to fund it. Studies show that the plan could cost between $331 billion to $400 billion and the state would have to raise an additional $100 billion in funding to pay for it.
• The additional funding would come in the form of fees or tax hikes. Senator Lara’s office, one of the key authors of the bill, suggests a 15% payroll tax. Other studies suggest a payroll tax increase with an additional sales tax hike.
• The bill was rushed through the Senate, leaving the Assembly to fill in the holes. Senators in favor of the bill admitted it had serious flaws but because of legislative deadlines decided to pass it to the Assembly to fill in the gaps. The bill is currently at its first reading on the Assembly floor and it is unclear if the Assembly will seriously consider the bill this year.

California has made significant steps in improving health care and here at BizFed we support efforts to increase access and provide affordable health care in a responsible manner. We will continue to support our members in opposing this bill and keep you updated on any further developments regarding this legislation.

Sincerely,

Sarah Wiltfong, Policy Manager 310.213.8742 – sarah.wiltfong@bizfed.org BizFed.org Los Angeles County Business Federation A grassroots alliance of 160+ diverse business groups mobilizing 275,000 employers