Legislators endorse SEIU-UHW ballot initiatives to lower healthcare costs

[Feb. 4, 2014] SACRAMENTOFour state legislators from Southern California have endorsed two ballot initiatives that would directly reduce prices and executive salaries in California hospitals.

Sen. Ricardo Lara (D-Bell Gardens), Assemblyman Jimmy Gomez (D-Los Angeles), Assemblyman Anthony Rendon (D-Lakewood) and Assemblyman Das Williams (D-Santa Barbara) support the effort to rein in healthcare costs that have put quality care out of reach for many Californians.

“My constituents confront the high cost of healthcare every day,” Rendon said. “For some of them, one illness or one injury can destroy their finances and tear apart their family. I support these initiatives because we need to make sure healthcare in California is affordable for everyone.”

The two initiatives are sponsored by members of SEIU-United Healthcare Workers West, the state’s largest union of hospital and other healthcare workers. More information is available at www.HealthCareCosts2Much.org.

The initiatives are:

  • Charitable Hospital Executive Compensation Act of 2014: Prohibits nonprofit hospital executives in California from receiving more than $450,000 in annual compensation – the same amount received by the President of the United States. Many top executives in the state’s non-profit hospitals make more than a million dollars a year.
  • Fair Healthcare Pricing Act of 2014: Prohibits hospitals from charging more than 25 percent above the actual cost of providing patient care. On average, California hospitals charge 320 percent more than the actual cost of providing care in their facilities.

According to the Office of Statewide Health Planning and Development, California hospitals subject to this ballot initiative charged $233.8 billion in 2012 – even though their operating expenses were only $54.5 billion.

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Paid for by Yes for a Healthy California, sponsored and major funding by Service Employees International Union, United Health Care Workers West. Additional major funding by State Council of Service Employees Issues Committee.


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