| AB 8 (Núñez-Perata): "Health Care Coverage" |
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| SB 840 (Kuehl): "Single-Payer Health Care Coverage" |
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| Governor Schwarzenegger's Plan: "Stay Healthy California" |
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| There are three significant healthcare reform proposals being debated in Sacramento right now (see below). All of them represent serious attempts to address the problem of access to affordable healthcare and to find a solution that incorporates the principles that are essential to comprehensive reform: (1) coverage for all, (2) cost reduction, (3) affordability for employers and individuals, (4) non-discrimination based on health risk or type/size of business, and (5) shared, equitable responsibility by all stakeholders, including businesses, government, individuals and the healthcare industry. |
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| We are open to a range of legislative solutions, so long as they satisfy our principles. The important thing is that we need to solve the problem and implement a plan for comprehensive, affordable, quality health care now. There is more than one way to achieve reform. Every other industrialized country in the world has universal health care, but they don't all use the same model. The important thing is that they ensure comprehensive, affordable, quality healthcare for all. We must develop a solution that is politically realistic and is best for us. |
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| We urge the Legislature and the Governor to come together to pass and sign legislation that and ensures comprehensive, affordable, quality health care for all Californians. |
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| AB 8 (Núñez-Perata): "Health Care Coverage" |
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| Assembly Speaker Fabian Núñez and Senate President Pro-Tem Don Perata's health reform proposal (AB 8) establishes a "pay or play" system that requires employers, who are not paying at least 7.5% of total payroll for health insurance to pay 7.5% of payroll into a purchasing pool. It requires employees of firms that pay into that pool to purchase insurance from the pool at sliding-scale rates. The proposal expands eligibility for public health insurance programs for children and parents. It also aims to improve access to coverage on the individual insurance market by standardizing medical underwriting, clarifying eligibility for the high-risk pool, and facilitating comparison shopping. And, it prohibits insurers from denying insurance based upon pre-existing medical conditions. |
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| The proposal would be financed through employer and employee contributions and new federal matching dollars associated with public program expansion. The proposal includes specific elements to help control health care costs, including requirements that insurance companies pay at least 85% of their premiums on patient care, and a timeline for hospitals, doctors and health insurers to have electronic medical records. |
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| SB 840 (Kuehl): "Single-Payer Health Care Coverage" |
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| Senator Sheila Kuehl's health reform proposal (SB 840) proposes the creation of a new single-payer system. This new government-administered system would replace private health insurers and would provide a uniform, comprehensive set of benefits for all. A new California Health Insurance System Commissioner would negotiate and set rates for health care services, prescription drugs, and medical supplies. |
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| Companion legislation, SB 1014, would finance the proposal via new payroll taxes (anticipated at three to four percent for individuals and eight percent for employers), an additional income tax on those earning more than $200,000, and anticipated administrative and other savings. The proposal includes specific elements to help control health care costs. |
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| Governor Schwarzenegger's Plan: "Stay Healthy California" |
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| Governor Arnold Schwarzenegger's proposal requires that all Californians purchase health coverage if they do not already have it, with sliding-scale subsidies for people earning less than 250% of the federal poverty level. It also obligates employers with 10 or more employees who are not paying at least 4% of total payroll for health insurance to pay 4% of payroll to help subsidize broader public health programs. And, it prohibits insurers from denying insurance based upon pre-existing medical conditions. |
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| The proposal would be financed through increased federal funding, a two percent fee on physician revenue, a four percent fee on hospital revenue, and sliding scale individual/family contributions of between three and six percent of income. The proposal includes specific elements to help control health care costs, including requirements that insurance companies pay at least 85% of their premiums on patient care, and a timeline for hospitals, doctors and health insurers to have electronic medical records. |
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| For detailed information on the California legislative proposals, click here. |
