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CA: Can Arnold sneak past insurers?
Los Angeles Daily News - Opinion ^ | February 07, 2004 | Jill Stewart

Posted on 02/09/2004 2:37:43 PM PST by calcowgirl

The governor is getting into a tricky new campaign, and -- if he wants Californians to keep siding with him -- he needs to watch out for his propensity for cheerily dismissing behavior on his part that doesn't sit so well with others.

You're a sly one if you guessed I want to talk about the insurance and health care industries.

These fat cats gave scads of money to Gov. Gray Davis, and now some are pouring fortunes into the coffers of Arnold Schwarzenegger's various campaign committees.

Unless you've been stuck in solitary confinement, you know that Schwarzenegger refuses to take money from public employee unions with whom he must negotiate and American Indian tribes because these are California's most powerful, high-pressure lobbying groups. Schwarzenegger must deal with each of them in hopes of saving California billions of dollars.

Yet Schwarzenegger has opened up the floodgates to virtually any other group, apparently not taking too seriously the chance that they could taint his efforts to pass the March 2 bond measure and a possible November initiative to reform workers' compensation.

Come November, if the Legislature fails to rid workers' compensation of the troubles that have driven premiums crazily upward, Californians could see the most expensive mudfest ever involving a ballot measure. A wad of cash will also be spent on the March 2 campaign.

There's potential for great good in what the governor is doing, but also for great mischief.

Big insurers have been heaping the governor with money just as he fights for massive reform of workers' comp. One Schwarzenegger committee received $100,000 from AIG (Motto: "We know money"). Travelers gave $49,000 and Chubb gave $29,000.

This smells. And I'm not a hysterical type who buys the silly claim that the insurers caused the skyrocketing costs. Many insurers still avoid California because workers' comp is so jammed with people gaming the system, even our huge premiums aren't a lure.

Costs are out of control because the Legislature buckled to unions -- who see workers comp as a vacation perk -- by banning use of objective medical criteria, such as that of the American Medical Association, to assess worker injuries.

And California's "no fault" system ensures that serious claims are fought over in court for months. This was done to reward the gluttonous workers' comp. lawyer lobby. In Utah, 4 percent of serious cases go to court. In California, it's 50 percent.

We simply must cut out these awful middlemen. But it won't help sell reform if Schwarzenegger gets heaped with bucks by insurers. James Carville and other political strategists helping the opponents of reform will claim the governor is tainted -- a perfect way to shift public focus away from leeches in the system. After Carville spoke to them recently, workers' comp attorneys coughed up $2.1 million to fight reform.

Big health care entities are also giving to the governor. They could be affected by his proposed cost-saving efforts in the Medi-Cal and Healthy Families programs, or by Schwarzenegger's position on Senate Bill 2, signed by Davis last fall.

SB 2 requires companies with more than 50 employees to provide state-controlled health care to employees by 2007. A Field poll shows voters back this misguided law. The fine print forces many Californians off of their private insurance and onto state-run, HMO-like insurance. I predict a mess.

If Schwarzenegger campaigns for a measure to repeal SB 2 in November, critics will instantly point to money he received, such as $21,200 from Health Net, $31,200 from Pacificare and $21,200 from Dennis Weinberg, an executive at Wellpoint.

This is the knotty problem presented by massive contributions, which voters tried to end with passage of campaign finance reform. Unfortunately, it was scam reform written by the Legislature, containing more holes than a bullet-riddled body.

Darry Sragow, a respected Democratic consultant, says voters won't judge the governor -- for now. "I think voters understand that the governor is now involved in politics, and in politics you have the unsavory problem of fund-raising, and that he is going to have to do it to get things done."

So maybe it won't hurt the governor personally. But it will give special interests and those who oppose change just the opening they need. I hope the governor is ready to pay that price.

Jill Stewart is a print, radio and television commentator on California politics. She can be reached via her Web site, www.jillstewart.net .


TOPICS: Editorial; Government; News/Current Events; US: California
KEYWORDS: calgov2002; california; healthcare; sb2; schwarzenegger; workerscomp

1 posted on 02/09/2004 2:37:46 PM PST by calcowgirl
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To: calcowgirl
"I think voters understand that the governor is now involved in politics, and in politics you have the unsavory problem of fund-raising, and that he is going to have to do it to get things done."

Spoken like a true Democrat hack.

I think voters don't think that way. I think that's why Davis got tossed.

2 posted on 02/09/2004 3:09:00 PM PST by Amerigomag
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To: calcowgirl
Of course, there's always the chance that he will accept the donations and pay them back with a nice big, "Thanks". That would be my first guess.
3 posted on 02/09/2004 6:32:19 PM PST by trebb (Ain't God good . . .)
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To: trebb; FairOpinion; Carry_Okie; Jim Robinson; Grampa Dave; South40; Ernest_at_the_Beach; ...
I'll come to Arnold's defense on this one. "The Public" turns a totally blind eye to how next to impossible it is to campaign state-wide and how horribly expensive it is to get a message out. Arnold knows the free media turns off to public policy issues and only seeks out the sensational stuff to help get ratings to get higher prices for advertising!!!

All you populist FReepers who think it's evil for big business to contribute to candidates... I'd sure like to see any of you get elected to anything, even locally without accepting money from business interests! Who else has any extra money to contribute in the amounts necessary to buy TV time at today's rates?

In CA, talk radio and internet alone ain't gonna git anybody elected statewide! Just ask any loser!!!

4 posted on 02/09/2004 8:16:15 PM PST by SierraWasp (EnvironMentalism is NOW beyond the point of "Diminishing Returns!" GANG-GREEN is setting in!!!)
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To: SierraWasp
In CA, talk radio and internet alone ain't gonna git anybody elected statewide! Just ask any loser!!!

This truism is changing rapidly. Note Howard Dean's success in Internet fundraising.

5 posted on 02/09/2004 8:36:41 PM PST by Carry_Okie (A faith in Justice, none in "fairness")
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To: Carry_Okie
Internet support is a mile wide and an inch deep. There ain't no "there" there! Plus, Howard squandered, then went to the well and well... the point and click crowd was off surfin some other site with their flickering minds!!! Phffft!!!

The more things change... The more they stay the same. The business interests pay up under the duress of trying to buy "protection!" Davis proved that.

The regulation, litigation, consumerist attorneys, the bad press from reporters tryin to "change the world," the pissant "populist" politicians, the suspicious nature in everyone spurred by the media, the labor problems, the mad cow and Alar scares, the EnvironMental Crimes Enforcement Task Forces... But most of all, an increasingly cynical society, jaded by the sensationalist media!!!

It's a wonder anyone wants to build a business enterprise in CA even on the internet, anymore!!! It's so easy to cast aspersions at a candidate and knock them out.

It's not that conservatives can't beat Barbara Boxer because they're conservatives. It's that they get the last second Herschenson treatment to make them look hipocritical because they hold themselves to a higher standard which makes them vulnerable!

Creepy liberals cash in on that at every opportunity. The media love it because it sells ads!!! You know all this!!! Then we have so-called conservatives believin that conservatives can't get elected, that RINO's are the only answer! Bah! Humbug!!!

Conservatives need your ideas and other rare ideas like yours and need to learn how to package them to build enthusiasm!!! Then people will support them because they LIKE THEM, not because they fear them.

6 posted on 02/09/2004 10:09:06 PM PST by SierraWasp (EnvironMentalism is NOW beyond the point of "Diminishing Returns!" GANG-GREEN is setting in!!!)
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