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  HEALTH CARE REFORM
SB 840 (Kuehl): The California Universal Healthcare Act
A viable and affordable solution for the health care crisis

In-Depth Questions and Answers

Quality of care issues

1.  What are the causes of crowded emergency rooms?   

Overcrowded emergency rooms have long waiting times, routine diversions of ambulance drivers and are not available to all patients who need them.[1] More than 65 emergency rooms have closed in California during the last decade.[2] There are multiple reasons for these problems. A national study finds that uninsured visits to emergency departments increased by about 10 percent despite a smaller percent change in the number of uninsured.[3] During the same period, visits to physician offices by uninsured persons declined by 37 percent. Higher caseloads and lower reimbursements from public and private payers compelled many medical practices to limit care provided to uninsured patients.[4]

The study also finds that even though uninsured visits did increase, they did not account for most of the increase in emergency room use. Instead, those insured by private plans and by Medicare together accounted for about two-thirds of the overall increase in emergency room visits. The number of privately insured people alone accounted for more than half of the increase in usage during this same period.[5] One complaint compelling the insured to seek emergency room treatment is the frustration many of the insured have with the current outpatient system. Unable to get in to see their primary care doctor in a timely manner, people with insurance go to the emergency room and are diagnosed, tested and treated in one visit.[6]

In contrast, SB 840 provides comprehensive health care for every resident and a system that eliminates or diminishes most of the above problems. When everyone has health coverage and can choose his or her primary care doctor, long waits and overcrowded emergency rooms will no longer be the norm.

2.     How does SB 840 improve care quality?

Studies show Americans get only 54 percent of the medical treatments they need, even if they have good insurance and go to a good doctor and an accredited medical center.[7] The National Academies’ Institute of Medicine finds that Americans are experiencing an epidemic of sub-standard care that they term a "quality chasm”—a wide gulf between the care needed and the care actually delivered to patients.[8]

SB 840 creates a publicly financed health care system that provides comprehensive health coverage based on one standard of care for all residents. At minimum, the new system provides methods to improve care quality that include primary and preventative care, evidence-based standards of care to help doctors make accurate decisions, mandatory reporting of errors, teams that evaluate the effectiveness and safety of new technology, and funding for development of electronic medical records and compatible computer systems.

3.     Can individuals choose their own doctor?

SB 840 provides that every resident can choose his or her own primary doctor and dentist. Women also can choose their obstetrician-gynecologist as well as a primary care doctor. Restrictions by HMOs and insurance companies on who can provide health care to patients are eliminated. SB 840 allows residents to choose a fee-for-service doctor or a doctor employed by a health care system like Kaiser. Primary care providers and emergency doctors will make referrals to specialists. However, a patient also can see a specialist without a referral, but in this case, they will have to pay out of pocket.

4.     Would SB 840 stifle innovation?

SB 840 would stimulate innovation. Lack of money and markets stifles innovation.

The market for health care innovations would expand because 36 million Californians would have access to quality health coverage and would get medical care as needed. The expansion of the new health care system would create the demand for more goods and services that would result in more state revenue, some of which could be invested in well-funded budgets for research and development.

SB 840’s Partnerships for Health provides health care grants for communities to develop innovative programs.

SB 840 provides for a statewide database of information about what is needed to provide care quality. This information could be a source of new ideas.

5.     How does SB 840 decrease medical errors?

Errors would decrease as the new system implements human and computerized error-check systems on a statewide basis. Such systems are now used successfully in the Veterans' health system, Kaiser, and in other countries that have universal health care systems. Also, errors due to understaffing, the lack of readily accessible medical information, poorly coordinated medical services, and inadequately coordinated care would decrease.

6.     Does SB 840 address the nursing shortage?

The nursing shortage cannot be solved overnight. Lack of funds for training nurses is a major part of the problem. SB 840 provides for a publicly financed health care system that can set priorities, which can include investing in nursing education. As overall functioning of the new health care system improves, working conditions and factors contributing to the shortage of nurses can be removed.


[1] Who is the blame for the health crisis? San Francisco Chronicle, 2006, B-6. Accessed 03/04/07 from  http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/07/31/EDGOBIPU011.DTL
[2] Governor Arnold Schwartzenegger, Governor’s Health Care Proposal, 2007, 3.  Data obtained from the California Office of Statewide Health Planning. Accessed 05/07/07 from http://www.stayhealthycalifornia.com/
[3] Peter J Cunningham and Jessica H. May, Insured Americans Drive Surge in Emergency Department Visits, Issue Brief No. 70, Washington, DC: Center for Studying Health System Change, 2003, 2.  Accessed 12/17/07 from http://www.hschange.com/CONTENT/613/?PRINT-1
[4] Ibid. 3
[5] Ibid. 2  
[6] Who is the blame for the health crisis? San Francisco Chronicle, 2006, B-6. Accessed 03/04/07 from  http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/07/31/EDGOBIPU011.DTL
[7]
8] Building a Better Health Care System: Specifications for Reform, Washington, DC: National Coalition on Health Care, 2004, 10. Accessed 01/24/06 from http://www.nchc.org/materials/studies/reform.pdf

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