Governor Schwarzenegger Moves Forward With Health Care Reform Legislation
Compromise Enhances Original Proposal, Maintains Core Principles
Governor Arnold Schwarzenegger today released language in bill form for the Health Care Security and Cost Reduction Act (the Act), legislation that reflects feedback from more than 1,000 meetings he and his health care team held with stakeholders and legislative leaders regarding the comprehensive health care reform proposal he announced in January. The Act brings affordable health care coverage to every Californian by:
“Everyone is working so hard on this because what’s at stake is a health care delivery system that works for all Californians,” said Gov. Schwarzenegger. “We have the best opportunity for comprehensive health care reform in one hundred years because the more people study our plan, the more they agree with what we have been saying since day one: if everyone pitches in and does their part, then everyone will benefit.”
The Act maintains the core principles of the proposal that Governor Schwarzenegger introduced in January. While continuing to reduce the hidden tax, lower costs and provide access to coverage for all Californians, differences in the compromise legislation include:
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Core Principles: |
January Proposal |
Health Care Security And Cost Reduction Act |
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Universal Coverage
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Required all Californians to have health insurance coverage. |
Maintains requirement that all Californians obtain coverage, and strengthens provisions to increase affordability for working families. |
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Affordability
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Provided state financial assistance through a purchasing pool to Californians with incomes between 100-250% of the poverty level.
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Increases affordability for working families even further by reducing the amount that low and moderate income individuals will have to pay for coverage in the state subsidized pool, limits premiums based on income, and creates a tax credit for individuals/families between 250-350% of the federal poverty level.
The legislation also requires employers to offer employees IRS Code Section 125 plans. In addition, employers and their employees who choose a Health Savings Account health benefit product will receive tax savings consistent with federal law. |
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Guarantee Issue
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Required insurance to guarantee coverage, with limits on how much they can charge based on age or health status, so that all individuals have access to affordable products.
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Maintains guarantee issue by ensuring that all Californians will be able to buy health insurance regardless of their medical history or age. Phases in elimination of medical rating and protects consumers against significant rate spikes based on their health status by putting parameters on what insurers can charge above or below a standard rate. |
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Financing |
Doctor’s participation: Required that doctors contribute a 2% fee to subsidize a purchasing pool for low income Californians and, in return, receive more insured patients and higher Medi-Cal reimbursement.
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The basic premise of shared responsibility is that everyone who benefits from the reforms must contribute in a meaningful way. Although doctors are no longer required to contribute to the financing under the Act, they have additional responsibilities and incentives to care for many newly insured individuals. |
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Employer Contribution: Required employers with 10 or more employees who choose not to offer health coverage to contribute an amount equal to 4% of payroll toward the cost of employees’ health coverage. |
Protects small businesses by basing contributions on payroll. Under the plan employers who do not offer health care coverage will make a contribution based upon a sliding scale fee from 0-4 percent based on their total payroll. |
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Lottery: Not included. |
The bill proposes to lease the California Lottery to help pay for health care costs.
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Public Hospitals
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Counties would retain $1 billion in current funding (primarily for outpatient services) and county and UC hospitals will retain $1 billion in federal Disproportionate Share Hospital (DSH) funds and in addition, some “safety net” funds for primarily inpatient services.
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California’s public hospitals make significant financial gains under the new reforms. In addition to the funding increases included in the January 2007 proposal, the new legislation includes $500 million in additional funding for public hospitals. The Act includes protections to support county hospitals in the context of universal coverage. |
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Minimum Benefit
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$5,000 deductible plan with maximum out-of-pocket limits of $7,500 per person and $10,000 per family. |
Does not define the minimum health insurance level. Instead, it directs the Secretary of Health and Human Services to establish and adopt the minimum benefit level via the regulatory process, which then cannot be changed except by legislative action. The minimum benefit level must: cover medical, hospital, preventive and prescription drug services; promote access to care; and must be set at a level where premiums are affordable. |
I thought he was going to say:
$8,383,477,331.91.
Please pay by October 31, 2007.
He seems to be better than the alternative.
Reuters take on announcement
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Schwarzenegger offers health care bill for uninsured
http://news.yahoo.com/s/nm/20071009/ts_nm/california_dc;_ylt=Ah_KadAS5.Lbyj2PV77WYwes0NUE
SAN FRANCISCO (Reuters) - California Gov. Arnold Schwarzenegger on Tuesday unveiled his long awaited bill aimed at providing health care insurance to nearly 7 million people in the most populous U.S. state who do not have it.
The Republican governor’s bill will compete with plans proposed by Democrats who control the state legislature amid a special legislative session he ordered for lawmakers to tackle health care and water policies.
In addition to his goal of extending health care coverage to the uninsured, Schwarzenegger has said he aims to lower medical costs with legislation that would require individuals and businesses to have, offer or subsidize some form of health care insurance.
“Everyone is working so hard on this because what’s at stake is a health care delivery system that works for all Californians,” Schwarzenegger said in a statement.
“We have the best opportunity for comprehensive health care reform in 100 years because the more people study our plan, the more they agree with what we have been saying since day one: if everyone pitches in and does their part, then everyone will benefit,” the celebrity governor added.
Schwarzenegger said his bill advances the principles he said in January would guide his plans for extending health care insurance to an estimated 6.7 million uninsured Californians.
Under his bill, Californians would be required to have health care insurance. Low and moderate income individuals could obtain it through a subsidized state account.
Employers would be required to offer employees health care insurance and insurers could not reject applicants because of their age or medical history.
Small businesses that do not offer health care insurance would have to pay into a state account that funds it and proceeds from California’s lottery would help pay for it.
A major difference between the bill he introduced and the governor’s initial plan is that under the legislation doctors would not be required to pay a fee to help support a state account that would fund health insurance for the poor.
Doctors had complained about the initial fee plan and Republican lawmakers said it amounted to a tax.
Assembly Speaker Fabian Nunez in a statement said a “careful review” of Schwarzenegger’s plan could move talks on a compromise health care bill forward.
“I am pleased the governor will be putting his health care proposals into a bill that can be properly studied and evaluated,” Nunez said.
My husband spent at least 30 minutes on the phone quite some time ago answering a survey from Arnies people about this. Interesting.
Why does this man want to mess things up?
I would like to include a requirement that forces all elected officials to use the same plan which will be forced upon most of us. They can not use their official status to gain a earlier appointment, better treatments or go outside the system because they can pay for it. If they need to seek treatment outside the system they must publicly state why the failure of the system forces to go outside the system. If they voted for them system, resign their office before seeking the needed treatment. If they add this I still thing it would be a stupid.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
“...Democratic leaders...”
What is “Democratic” about these Socialist/Commies?