State Senator
State Capitol
Sacramento, CA 95814

Re: California Health Insurance Reliability Act (SB 840)

Dear Senator ,

I strongly urge you to support SB 840, the California Health Insurance Reliability Act, which will cover every Californian with comprehensive health insurance and give them the ability to choose their own physician. This model is estimated to save $8 billion, in the first year alone, in statewide healthcare spending, and will save money for families, businesses, individuals and local governments.

Our current broken health care system leaves out 1 in 5 Californians--6.5 million Californians are uninsured, and 83% of the uninsured belong to working families. Not having insurance can be catastrophic to families, resulting in death, disability, and financial ruin. One half of all bankruptcies are related to medical bills, and the uninsured have a 25% higher mortality rate, according to the Institute of Medicine.

Health care insecurity affects all Californians. In a changing economy, anyone can lose their coverage. Between the ages of 18 and 36 alone the average person holds 9.6 jobs. COBRA and individual insurance are too expensive for most. The emergency care we all rely on is so stressed by the burden of treating the uninsured that emergency rooms are running in the red. California emergency rooms lost $540 million in 2003, and in the last decade, 15% of California's emergency rooms have closed their doors.

As the nationwide health care crisis deepens, SB 840 offers the opportunity to secure comprehensive health insurance for every Californian through a model that would save money for families, businesses, individuals, and the state and that still preserves choice.

A recent Boston University study found that our current system wastes nearly 50% of all health care dollars on clinical and administrative costs. By streamlining the administrative functions through SB 840, California could shift $20 billion in the first year from administration into direct health care. Also, by consolidating California's purchasing power for pharmaceuticals, California could shift an additional $5.3 billion into direct health care. Additionally, SB 840, by providing preventative and primary care to everyone in California is projected to save an additional $3.4 billion in the first year.

SB 840 will affordably cover every Californian with a high quality of care and comprehensive benefits. Every Californian will be covered by an insurance plan that provides medical, dental, vision and prescription drug coverage, including hospitalization, emergency room care and transportation, laboratory work, skilled nursing care, mental health care, drug addiction rehabilitation and chiropractic care.