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Dems back part of health plan
Mandatory insurance, sliding fee scale for employers get support in governor's effort.
By Aurelio Rojas - arojas@sacbee.com
After months of little movement, Democratic leaders on Monday agreed to significant parts of Gov. Arnold Schwarzenegger's universal health care plan, including requiring individuals to purchase insurance.
At a briefing with reporters, Assembly Speaker Fabian Núñez, D-Los Angeles, also outlined a funding proposal designed to bridge the difference between Democrats and the Republican governor on how much employers would be required to contribute.
The governor has proposed that employers pay zero to 4 percent of their payroll based on a sliding scale. Núñez and Sen. President Pro Tem Don Perata, D-Oakland, had countered with 7.5 percent. The new proposal calls for a 2 to 6.5 percent sliding scale.
Firms with payroll of $100,000 or less would be required to pay 2 percent. Those with payrolls between $100,000 and $150,000 would have to pay 4 percent. And those with payrolls of more than $150,000 would have to pay 6.5 percent.
The new proposal also includes a new tax on tobacco products, including a $2-a-pack tax on cigarettes. Voters would have to approve all the funding elements in the plan, which would be placed on the November 2008 ballot.
"We're a hop, skip or a jump from a deal we hope the governor can embrace," Núñez said. "If he doesn't, Senator Don Perata and I will have to sit down and figure out what more movement we could possibly make."
Schwarzenegger administration officials welcomed the new proposal, but said they had not had time to review the specifics.
"This is fairly positive movement," said Aaron McLear, a spokesman for the governor. "We look forward to seeing the details of the proposal, but understand there are still issues to be resolved."
Among the possible stumbling blocks, the new proposal incorporates provisions of the Democratic bill – Assembly Bill 8 – that Schwarzenegger vetoed, requiring hospitals and insurers to provide more transparency in their costs.
The California Hospital Association, which has agreed to contribute 4 percent of hospitals' revenue to help finance the governor's $14 billion plan, had called the transparency provisions in AB 8 a deal-breaker.
Schwarzenegger could, however, agree to the tobacco tax. The governor has adamantly opposed proposed tax hikes in the past, but recently said he's open to a general tax increase to pay for health care.
However, opposition from the hospitals and powerful tobacco industry would make it harder for Democrats to sell their proposal to voters.
"We always knew that we weren't going to be able to neutralize the opposition," Núñez said. "There's going to be business opposition."
Labor unions, traditionally Democratic allies, also could balk at the proposal that individuals be required to purchase health insurance. Núñez, a former labor organizer, said he had briefed some unions on the new proposal, but did not elaborate.
The Democrats' new proposal would provide greater state subsidies to lower middle-class families, a major labor concern.
Public programs would be expanded to cover families earning up to 300 percent of the federal poverty level – about $62,000 a year for a family of four.
Individuals with incomes between 300 percent and 450 percent of the poverty level would also be eligible for a tax subsidy. And individuals earning between 150 percent and 300 percent of the poverty level would not have to pay insurance premiums or deductibles.
The new Democratic proposal comes 11 months after Schwarzenegger unveiled his plan and eight weeks after he announced a special legislative session to enact it.
Núñez said the new proposal will go before the Assembly Health Committee Nov. 14. Democratic leaders are hoping to reach agreement with the governor before the end of the month.
Earlier Monday, the panel that manages California's health care program for poor children adopted rules to allow the state to create a waiting list and to remove some of the 1.1 million kids already on the rolls.
The Managed Risk Medical Insurance Board voted unanimously to prepare for implementing the cutbacks because of an impasse between Congress and the Bush administration in reauthorizing the state Children's Health Insurance Program.
Children's advocates urged the board to delay a vote on the new rules until next month, saying they found it ironic that the state was considering cutting health programs at the same time political leaders are discussing universal health care.
The regulations adopted by the state board do not take effect for another month.
The board has scheduled a Dec. 5 meeting, when it will decide whether to establish a waiting list and drop children from the Healthy Families program if the federal logjam has not been broken.
Mandatory insurance, sliding fee scale for employers get support in governor's effort.
By Aurelio Rojas - arojas@sacbee.com
After months of little movement, Democratic leaders on Monday agreed to significant parts of Gov. Arnold Schwarzenegger's universal health care plan, including requiring individuals to purchase insurance.
At a briefing with reporters, Assembly Speaker Fabian Núñez, D-Los Angeles, also outlined a funding proposal designed to bridge the difference between Democrats and the Republican governor on how much employers would be required to contribute.
The governor has proposed that employers pay zero to 4 percent of their payroll based on a sliding scale. Núñez and Sen. President Pro Tem Don Perata, D-Oakland, had countered with 7.5 percent. The new proposal calls for a 2 to 6.5 percent sliding scale.
Firms with payroll of $100,000 or less would be required to pay 2 percent. Those with payrolls between $100,000 and $150,000 would have to pay 4 percent. And those with payrolls of more than $150,000 would have to pay 6.5 percent.
The new proposal also includes a new tax on tobacco products, including a $2-a-pack tax on cigarettes. Voters would have to approve all the funding elements in the plan, which would be placed on the November 2008 ballot.
"We're a hop, skip or a jump from a deal we hope the governor can embrace," Núñez said. "If he doesn't, Senator Don Perata and I will have to sit down and figure out what more movement we could possibly make."
Schwarzenegger administration officials welcomed the new proposal, but said they had not had time to review the specifics.
"This is fairly positive movement," said Aaron McLear, a spokesman for the governor. "We look forward to seeing the details of the proposal, but understand there are still issues to be resolved."
Among the possible stumbling blocks, the new proposal incorporates provisions of the Democratic bill – Assembly Bill 8 – that Schwarzenegger vetoed, requiring hospitals and insurers to provide more transparency in their costs.
The California Hospital Association, which has agreed to contribute 4 percent of hospitals' revenue to help finance the governor's $14 billion plan, had called the transparency provisions in AB 8 a deal-breaker.
Schwarzenegger could, however, agree to the tobacco tax. The governor has adamantly opposed proposed tax hikes in the past, but recently said he's open to a general tax increase to pay for health care.
However, opposition from the hospitals and powerful tobacco industry would make it harder for Democrats to sell their proposal to voters.
"We always knew that we weren't going to be able to neutralize the opposition," Núñez said. "There's going to be business opposition."
Labor unions, traditionally Democratic allies, also could balk at the proposal that individuals be required to purchase health insurance. Núñez, a former labor organizer, said he had briefed some unions on the new proposal, but did not elaborate.
The Democrats' new proposal would provide greater state subsidies to lower middle-class families, a major labor concern.
Public programs would be expanded to cover families earning up to 300 percent of the federal poverty level – about $62,000 a year for a family of four.
Individuals with incomes between 300 percent and 450 percent of the poverty level would also be eligible for a tax subsidy. And individuals earning between 150 percent and 300 percent of the poverty level would not have to pay insurance premiums or deductibles.
The new Democratic proposal comes 11 months after Schwarzenegger unveiled his plan and eight weeks after he announced a special legislative session to enact it.
Núñez said the new proposal will go before the Assembly Health Committee Nov. 14. Democratic leaders are hoping to reach agreement with the governor before the end of the month.
Earlier Monday, the panel that manages California's health care program for poor children adopted rules to allow the state to create a waiting list and to remove some of the 1.1 million kids already on the rolls.
The Managed Risk Medical Insurance Board voted unanimously to prepare for implementing the cutbacks because of an impasse between Congress and the Bush administration in reauthorizing the state Children's Health Insurance Program.
Children's advocates urged the board to delay a vote on the new rules until next month, saying they found it ironic that the state was considering cutting health programs at the same time political leaders are discussing universal health care.
The regulations adopted by the state board do not take effect for another month.
The board has scheduled a Dec. 5 meeting, when it will decide whether to establish a waiting list and drop children from the Healthy Families program if the federal logjam has not been broken.
