The Governator's Big Plans
All right, I admit it, I'm stunned, almost to the point of shock, by Governor Arnold Schwartzenegger's plan for health care coverage for California residents. It is actually more comprehensive than most of the plans proposed by the Democrats in the legislature (many of whom have insurance company ties that rival those of their Republican colleagues). The Governor, himself on crutches after surgery following a skiing accident, made the announcement today, as reported by the Los Angeles Times. Here are some of the key provisions.
Schwarzenegger's plan, which he publicly unveiled at noon, would require employers with 10 workers or more to buy insurance for their workers or pay a fee of 4% of their payroll into a program to help provide coverage for the uninsured.
Schwarzenegger would tax doctors 2% of their gross revenue and place a 4% tax on hospitals. He campaigned for reelection on an anti-tax platform, but his administration argues that so many more people would have insurance that medical providers would make more money.
The governor also wants to ban insurers from refusing to offer coverage to some individuals because of their prior medical conditions. Insurers would also have to spend at least 85% of their premium revenues on patient care, a move that would limit the amount companies spend on administrative costs and profits.
Without explaining where the money would come from, Schwarzenegger proposed increasing payments to doctors and hospitals through Medi-Cal by $4 billion.
In an effort to cover all Californian children, including ones in the state illegally, Schwarzenegger's plan would expand the state's Healthy Families program, providing insurance to children whose parents make less than three times the poverty level. That works out to about $60,000 for a family of four.
And Schwarzenegger said his plan would require every Californian to have health insurance.
"If you can't afford it, the state will help you buy it," he said, "but you must be insured."
While there will be cavilling on both sides of the aisle and some loud screams of outrage from a number of lobbyists (insurance companies and various business groups), the proposal is a rather good start. Clearly I would prefer a single payer system, preferably at the federal level, but that doesn't seem likely for the present.
It's hard to tell what will actually emerge, especially since the tax increases proposed have to be passed by a super majority in California, and the Democrats don't have that kind of a majority. In any event, however, the opening volley has been fired.
At least on this issue, Arnold hasn't moved back to the right after the election.
Schwarzenegger's plan, which he publicly unveiled at noon, would require employers with 10 workers or more to buy insurance for their workers or pay a fee of 4% of their payroll into a program to help provide coverage for the uninsured.
Schwarzenegger would tax doctors 2% of their gross revenue and place a 4% tax on hospitals. He campaigned for reelection on an anti-tax platform, but his administration argues that so many more people would have insurance that medical providers would make more money.
The governor also wants to ban insurers from refusing to offer coverage to some individuals because of their prior medical conditions. Insurers would also have to spend at least 85% of their premium revenues on patient care, a move that would limit the amount companies spend on administrative costs and profits.
Without explaining where the money would come from, Schwarzenegger proposed increasing payments to doctors and hospitals through Medi-Cal by $4 billion.
In an effort to cover all Californian children, including ones in the state illegally, Schwarzenegger's plan would expand the state's Healthy Families program, providing insurance to children whose parents make less than three times the poverty level. That works out to about $60,000 for a family of four.
And Schwarzenegger said his plan would require every Californian to have health insurance.
"If you can't afford it, the state will help you buy it," he said, "but you must be insured."
While there will be cavilling on both sides of the aisle and some loud screams of outrage from a number of lobbyists (insurance companies and various business groups), the proposal is a rather good start. Clearly I would prefer a single payer system, preferably at the federal level, but that doesn't seem likely for the present.
It's hard to tell what will actually emerge, especially since the tax increases proposed have to be passed by a super majority in California, and the Democrats don't have that kind of a majority. In any event, however, the opening volley has been fired.
At least on this issue, Arnold hasn't moved back to the right after the election.
Labels: California, Health Care
posted by Diane at 2:14 PM
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