Data and methods for estimating the effects of SB 525 on workers and the California state budget

Data and methods for estimating the effects of SB 525 on workers and the California state budget Policy Brief UC Berkeley Center for Labor Research and Education February 2024 Data and methods for estimating the effects of SB 525 on workers and the California state budget Appendix to the brief “California health care minimum wage: New estimates for impacts on workers, patients, and the state budge. [...] Including Kaiser workers in the analysis is conservative because the recent collective Data and methods for estimating the effects of SB 525 on workers and the California state budget | 2 bargaining agreement between Kaiser and the Coalition of Kaiser Permanente Unions increases the wages of health care workers in a way that mirrors the law and therefore the labor cost increase for Kaiser workers. [...] Of offices of physicians, 31.8% were assumed to be in the large employer group based on an estimate of the percentage of physicians in the 10 largest health systems in California in 2018 (excluding Kaiser),11 and 14.2% were assumed to be part of Kaiser based on the number of physicians in The Permanente Medical Group (Northern California) and the Southern California Permanente Medical Group.12 Dat. [...] To obtain the total number of affected workers in each year from FY 2025 to FY 2028, we applied the estimated proportions from the ACS to data from the 2022 California Quarterly Census of Employment and Wages (QCEW) for the health care facilities covered by the law. [...] Data and methods for estimating the effects of SB 525 on workers and the California state budget | 9 The Medi-Cal state budget estimates in Figure 9 reflect the maximum increase in Medi-Cal expenditures if the Medi-Cal share of provider labor cost increases are immediately and fully passed through to the Medi-Cal program.