California Health Care Plan Moving Forward
California is following in Massachusetts’s footsteps, as Governor Arnold Schwarzenegger and State Democrats are working together to provide health insurance coverage for residents across the State. Across the State, almost 5 million people don’t have coverage. A recent report in the Washington Post detailed the efforts to secure funding for the program.
The Governor’s proposals for universal coverage was initiated in January; the price tag is estimated at $12 billion. The current status of the program negotiating the gap between the Governor’s plan and that which is being proposed by Democrats. The Governor has made overtures to legislators, calling on them to find common ground between the two proposals.
In fact, the two different programs aren’t all that different according to the Kaiser Family Foundation. The plans are also similar to an effort already implemented in Massachusetts earlier this year. Details about that were described on Hospital Buyer. As well, plans detailed by Democratic presidential hopefuls are also similar.
The program calls for mandatory coverage of all residents with a pool of funds to subsidize insurance for those with lower levels of income. Money for the pool would be generated by taxes to hospitals and physicians. Additional pool funding would come from employers that do not provide employees with coverage options.
The debate is over the funds from employers. The Governor’s plan calls for a contribution of four percent of payroll. The Democrats are asking for 7.5 percent. State Democratic Speaker Fabian Nez noted that a new sales tax to derive additional funds is likely as well.
Recent endorsements for the Schwarzenegger plan include the Los Angeles Chamber of Commerce and the California Hospital Association (pdf). The CHA endorsement followed negotiations on program provisions, described in the press release from CHA. As well, almost three quarters of State residents approve of the plan, according to recent polling data cited in the Post.
State Republicans are not in favor of either plan and predict that it will fail.
September 26, 2007 Related topics: Legal & legislative, Finance, Industry & Market