14 July 2017 New Jersey bill introduced to implement a single-payer healthcare system — payroll tax would be a funding source On June 5, 2017, A 4945, the Healthy New Jersey Act, was introduced to establish the framework for a universal single-payer healthcare coverage program. The bill calls for the program to be funded by two premiums, one a progressively graduated premium on all payroll and self-employed income, and the second, a progressively graduated premium on taxable non-payroll income, such as interest, dividends, and capital gains.? The "payroll premium" would be paid by employers, employees and the self-employed in a manner similar to the Medicare tax. A higher marginal rate would be assessed on higher brackets of income than that assessed on lower brackets of income. The bill does not specify what the premium rates and brackets would be — presumably, this would be determined by the nine-member Healthy New Jersey Board, which would be established under the bill to govern the program. The premiums would be set at levels anticipated to produce sufficient revenue to finance the program and other provisions of this act, to be scaled up as enrollment grows, taking into consideration anticipated federal revenue available for the program.? Provision would be made for state residents who are employed out-of-state and are eligible for the program, and non-residents who are employed in the state and are not eligible for the program. New Jersey joins several other states that are considering legislation to establish a single-payer health care system that would be funded by additional tax on income. For instance, a bill is again making its way through the New York legislature that would establish a single-payer system funded in part by premium taxes, including a payroll tax. (New York Health Act, A04738.) Also this year, California, like New York, is considering legislation that would install a state single payer system. SB 562, Californians for a Healthy California Act was referred to the Senate Committee on Appropriations on May 16, 2017. The Oregon Health Care For All (SB 1046), introduced in April 2017, would establish a plan for universal health care funded through a system of dedicated progressive taxes. The bill calls for funding recommendations based on the results of a study. The Rhode Island Comprehensive Health Insurance Program (H5069), introduced in January 2017, establishes a single-payer health care system funded by the collection of premiums. On May 24, 2017, the House Finance Committee recommended the measure be held for further study. Document ID: 2017-1139 |
