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Such structural changes total 13-percent in savings. Inefficienciesin the current system constitute the second area of savings. The report listsunnecessary services, fraud, inefficient deliveries of health care services,and missed prevention opportunities. Pollin said that he assumed a five-percent savingsin this area, a conservative figure gleaned from a 2010 Institute Of Medicinereport that set those savings at 19-percent. When asked if universal access to healthcare drives up utilization of services, he said that the report considers a five-percent increase in provision of services. He said that the report “does not adjustdownward for acuity of care” as for fewer emergency room visits and fewerunnecessary hospital days for neglected medical conditions. Between thesavings changes in structure and efficiencies (about 18-percent), less the increasedcosts of universal coverage and expansion (almost 10-percent), the new health billshould reduce costs by about 9-10%, from $370 to $330 billion. Pollin said thatpublic funds constitute 70-percent of California's health care expenses, or about $225 billion per year.Therefore, an additional $105 billion is needed. To meet this need, he proposedtwo taxes: one on gross business receipts (which will raise about $93 billion),and a sales tax (which will raise about $13 billion), both at 2.3-percent. Pollinpointed out two charts at the news conference - households and businesses. Hesaid that the bill is a “windfall for middle income families” who will seeabout a net nine-percent lower health care costs, noting that “wealthy households willpay more” (about one to two-percent) as they “now get a net subsidy” (about one-percent) from healthcare expense tax credits.
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