Proposed health care minimum wage increase: State costs would be offset by reduced reliance on the public safety net by health workers and their families

By the third year of the policy, the net state budget impact of the bill is estimated to range from $467 million in net savings to $303 million in net costs (2023 dollars), depending on the extent to which the state increases Medi-Cal provider payments and how many workers and dependents experience a change in health insurance eligibility. [...] Beyond the federal revenue used to support the increase in health care worker wages, the tax implications for the state of increased wages would depend in large part on who ultimately pays for the increase and how much of the funding comes from within the state versus outside of it. [...] Proposed health care minimum wage increase: State costs would be offset by reduced reliance on the public safety net by health workers and their families | 8 Conclusion Nearly half of the health care workers that would be affected by the increase in the minimum wage as proposed in SB 525 are themselves enrolled in safety net programs or have a household member enrolled in the programs. [...] Health benefits for state employees Health premiums for CalPERS subscribers employed by and retired from the state and their dependents are projected to total $6.9 billion in year two of the policy, and employers would pay approximately 83% of the premium based on the employer/worker premium split in 2022.30 The Proposed health care minimum wage increase: State costs would be offset by reduced rel. [...] To estimate the changes in Medi-Cal costs from a higher minimum wage for facilities other than SNFs, the projected increase in payroll expenses from the higher minimum wage for each facility type is multiplied by the estimated Medi-Cal share of expenses for each facility type.34 The Medi-Cal share of the payroll increase for each facility type is then multiplied by the state share of Medi-Cal fee-.