A proposal to eliminate health insurance companies and guarantee government-funded health care for all California residents is moving forward.

The Senate Health Committee voted Wednesday to send the measure to the Appropriations Committee. The vote came after hundreds of nurses clad in red held a rally in Sacramento, marched to the state Capitol and packed into a committee room.

The proposal is promoted by the state's powerful nursing union and two Democratic senators who say California should create a national model for providing health care for everyone.

Critics say the measure would disrupt the health care used by millions of Californians, would require high taxes and would likely create longer waits to see a doctor.