Study: Public Funds Pay for 71 Percent of Health Care in California

SACRAMENTO, CA -- A new study reveals California pays for roughly 71 percent of health care expenditures, more than the national estimate of 65 percent.

The study, conducted by UCLA Center for Health Policy Research, found "personal health care expenditures are estimated to total more than $367 billion in 2016. Approximately 71 percent of these expenditures will be paid for with public funds (i.e., taxpayer dollars)."

The Medi-Cal and Healthy Families program will make up the largest portion of the spending at 27 percent followed by Medicare at 20 percent, according to the study.

Other expenditures include "Tax subsidies for ESI (12 percent); government spending for public employee insurance (4 percent); county health expenditures (3 percent); other government programs—Veterans Affairs (VA) health care, Indian Health Services, and Maternal and Child Health (3 percent altogether); and ACA marketplace exchange subsidies (2 percent)."

Whereas, private spending comprises of roughly 29 percent of total health care spending in the Golden State.

The study adds, "If public funds continue to comprise the majority of total health care expenditures, it will be increasingly important for policymakers to consider whether these public funds are being distributed efficiently and effectively, and whether alternatives such as a state single-payer system would be a more effective use of public and private health spending."

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