Democrats Say Yes to California Insurance for All – Sort Of
After months of refusal, Democratic leaders have agreed to key elements of California Governor Arnold Schwarzenegger's health care reform plan, including a mandatory rule that all Californians have insurance.
The shift in the Democratic leaders’ position may indicate a growing willingness to oppose their allies in organized labor, who have long been against mandatory insurance.
Democrats hedged their acceptance of the insurance mandate with the caveat that there would be an exemption for those who do not qualify for subsidies and cannot afford the minimum level of coverage required by law.
The Democrats also reduced the minimum amount that employers must spend, with a maximum contribution of 6.5 percent of payroll. The new plan has a sliding scale for employers.
Other funding for the new plan would stem from a $2-a-pack increase in the tobacco tax and from a hospital tax similar to what the governor has proposed. The total cost of the proposed plan is about $14 billion, the same as Schwarzenegger's.
Assembly Speaker Fabian Nunez said the changes satisfied universal coverage and mandatory insurance, two key issues in Schwarzenegger’s health reform goals. "I think this is more than a gesture of goodwill," said Nunez, D-Los Angeles. "I think this is a sound proposal."
"This is clearly positive movement," noted Aaron McLear, Schwarzenegger's press secretary. "We look forward to seeing details of the proposal, but understand there are still issues to be resolved."
One of these issues is how much employers would have to pay and whether they will be required to cover part-time workers, something the governor's business allies strongly oppose.
Under the new Democratic plan, families earning up to 300 percent of the federal poverty level -- about $62,000 a year for a family of four -- would be covered by free or very low-cost public programs.
Those earning more would have to pay the full cost of coverage, unless their employers covered them or they joined a state-run insurance pool.
Tax credits would be available to families in the pool earning less than 450 percent of poverty -- about $93,000 for a family of four -- so health costs would not exceed 5 percent of income.
Other groups, including the California Nurses Association, flatly oppose any mandatory plan. "While we have yet to see the full details, any deal that forces individuals to buy insurance is outrageous and disgraceful," said Rose Ann DeMoro, head of the California Nurses Association. Pharmaceutical and tobacco company lobbies are expected to hotly contest the plan as well.
If the Democrats and Schwarzenegger do come to agreement, they still will have to go to the voters to fund their plan. Both sides hope to have a measure on the November 2008 ballot.
Published on November 7, 2007
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