Recently there has been legislative move which was proposed to 'outlaw private health insurance in California' (Ronald, 2006). In the proposal it was advised to establish California Health Insurance Agency, which could be regarded as the single payer system launched and sponsored by the state government for financing the health care of all Californians. The legislation is aimed at the abolishment of the private health insurance. The essence of the proposal is based on the adoption of the Canadian healthcare system, which encourage the system of socialized medicine (AMA, 2007).
             The health care system of the California is being improved into 'a publicly administered finance system' (Ronald, 2006), thus the California Health Insurance Agency is liable to finance towards all the health related claims. Such a proposal is expected to provide relief to more than twenty percent of the Californian population, who are unregistered to any of the health insurance company. The major concerns which the critics have reflected is with reference to the failure of the public based health insurance company in Canada, soon after the private health insurance agencies were declared illegal, and the public health insurance agency was entitled to look after the medical and health care system of the country, the Canadians expressed their displeasure towards public funded agency, and complained against the efficiency and effectiveness of their services. Previously, when such a proposal was referred to the governor of the Californian state, it was vetoed. The critics have associated the lack of political will with the expected failure of the state sponsored health care insurance system. It is expected that the implementation of such legislation will not only create an enormous, inefficient government bureaucracy, but will also be responsible for generating administrative chaos (Ronald, 2006). The critics do consider the current medic
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