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California lawmakers working on compromise Health Reform legislation

Sep 05, 2007--California Gov. Arnold Schwarzenegger (R) and Assembly Speaker Fabian Núñez (D) late last week discussed an agreement that aims to overhaul California's health care system through a simple majority vote in the Legislature this session followed by a ballot initiative next year on a funding mechanism, the Los Angeles Times reports.

The plan reportedly would require all California residents to obtain health care coverage and would provide subsidies to residents who cannot afford coverage.

It also would address problems in the private insurance market and require health care providers to disclose the costs of services to encourage competition.

According to the Times, "Schwarzenegger and Democrats have agreed all year on most of those goals. But they have been stymied on how to pay for it, since any tax increase passed by the Legislature requires two-thirds support, necessitating some Republican votes."

The Times reports that under a potential compromise, the Democrat-controlled Legislature would approve a bill containing all of the provisions except funding. Lawmakers also might establish a special board to determine the details.

Next year, voters would be asked on the ballot to approve mandatory employer contributions, as well as contributions from hospitals and possibly a sales tax increase to finance the plan. The state Democrats' health reform proposal (AB 8) would require employers to contribute 7.5% of their payrolls to worker health care or pay into a state fund, but under the compromise, the employer contribution rate likely would be lower, according to the Times (Rau, Los Angeles Times, 9/1).

Reaction
Núñez later said he's never agreed to "sign on to an individual mandate." He said, "I think the main thing is the question of affordability."

Núñez also said that he is "not going to compromise to put all of the funding for [the Democrats' health reform legislation] on the ballot and be left with a shell (bill)." In an interview with Sacramento Bee, Núñez said, "We're a long way away from any type of agreement," adding, "I will not go to the voters with a proposal in lieu of a legislative solution" (Rojas/Sanders, Sacramento Bee, 9/5). Senate President Pro Tempore Don Perata (D) has not signed on to the proposal, nor have other Democratic lawmakers (Los Angeles Times, 9/1).

Núñez said that his health care reform bill, co-authored with Senate President Pro Tempore Don Perata, would provide 75% of the funds to cover the 6.7 million uninsured California residents, and a ballot measure could ask voters to approve the remaining 25% of funding.

Assembly Republican leader Mike Villines on Tuesday predicted that voters would not approve a ballot measure and said that Schwarzenegger risks excluding Republicans with a ballot measure. "The governor has been very clear about saying he wants Republicans there," Villines said, adding, "That does rule out taxes, we understand that. But I think there's still things we can support" (Sacramento Bee, 9/5).

Meanwhile, Schwarzenegger announced on Friday that he has canceled a trip to England and postponed a trade mission to India in case he needs to call a special legislative session if compromises on health care reform and other issues are not reached before the session ends Sept. 14 (Rojas, Sacramento Bee, 9/1). Schwarzenegger also on Friday held a news conference in San Diego to continue to rally support for his plan. The governor said that legislators "have different ideas, but ... there is a willingness to work together to make this work." He added, "I can gauge that from the meetings that we have had." Schwarzenegger was joined by representatives from business, unions and local government who support his proposal (Marelius, San Diego Union-Tribune, 9/1).