Posted on 12/14/2007 9:36:40 PM PST by NormsRevenge
Gov. Arnold Schwarzenegger and Assembly Speaker Fabian Nunez have agreed on most aspects of a $14 billion health reform measure that would expand coverage to nearly 3.6 million uninsured Californians and force nearly everyone to buy health insurance.
A few details remain to be settled, such as the dollar amount of a tobacco tax to help finance the deal.
But the two have agreed on most aspects of the bill, including a sliding scale fee for employers, ranging from 1 percent of payroll to 6.5 percent of payroll, depending on the size of the company. There will also be a cigarette tax of either $1.50 or $2 a pack, both sides said.
Aides were still writing the bill Friday, but Nunez, D-Los Angeles, said the Assembly will take it up on Monday.
It was not clear when the Senate would take up the bill. Senate President Pro Tem Don Perata, D-Oakland, said Thursday that while he supported the reform proposal, he was reluctant to adopt new health care programs at a time when Schwarzenegger was calling for cuts to existing ones because of the swelling budget deficit. He also criticized a tobacco tax as a "lousy" funding source.
Schwarzenegger wants to get the deal passed before the capital is consumed by the budget mess. He said Friday that the deficit could be as high as $14 billion, and that he intends to declare a fiscal emergency in January to deal with it.
He urged lawmakers to take swift action on health care, saying he had achieved consensus among normally warring interest groups.
"We are very close to getting this done," he said Friday at Long Beach Memorial Medical Center.
But even if lawmakers pass a bill, the measure will still need voter approval. The governor is aiming for the November 2008 ballot.
According to an analysis by Nunez's office, the proposal would cover about 70 percent of the estimated 5.1 million uninsured Californians by expanding public programs and requiring everyone to have health insurance.
All children, regardless of their immigration status, would be eligible for subsidized coverage as long as their families did not earn more than 300 percent of the federal poverty level, or about $62,000 a year for a family of four.
The deal follows the outlines of what the governor has been proposing all year long: Every Californian would be required to have an insurance policy. Employers would be required to spend a minimum amount on employees' health care or contribute that amount to a state-run insurance pool. Insurance companies would have to take all comers and could no longer screen out those with pre-existing conditions.
Schwarzenegger and the Democrats wrangled for months over how much employers should pay. The governor finally agreed to raise the amount for firms with the largest payrolls, while reducing the amount for smaller firms.
But while the governor's original plan would have exempted firms with fewer than 10 employees - about 80 percent of businesses - the new plan affects all businesses.
Under the sliding scale payroll fee, firms with payrolls over $15 million would pay 6.5 percent. Those with payrolls under $250,000 would pay 1 percent.
Another big issue has been how far to go in subsidizing low- and middle-income people, to help them afford their insurance premiums.
Labor unions pushed hard for higher government subsidies, and Democrats got the governor to increase the amount of assistance in his plan. But that also helped drive the cost up by $2 billion.
Originally, Schwarzenegger wanted to lease the state lottery to a private firm to help underwrite the deal. Democrats refused, and Schwarzenegger reluctantly signed onto the tobacco tax hike.
The deal also would provide tax credits for those forced to spend more than 5.5 percent of their income on health insurance premiums, provided they earned no more than 400 percent of the federal poverty level - nearly $41,000 for an individual and about $82,000 for a family of four.
And the deal includes extra help for early retirees, who would likely face much higher premiums because of their age. Those facing insurance premiums of more than 10 percent of their income would get assistance up to 700 percent of the poverty level: about $71,000 for a single person and $145,000 for a family of four.
Those facing financial hardship could apply to be exempt from the mandatory insurance requirement. And poor people who do not qualify for public programs, including illegal immigrants, would be exempt if even a bare-bones policy cost more than 5 percent of their income.
Many interest groups are waiting in the wings as potential opponents to any deal. They include the tobacco lobby and the equally powerful pharmaceutical lobby, which does not want the state-run insurance pool to use its size to drive down the price of drugs through bulk purchasing.
Organized labor is another potential problem. Unhappy labor unions could be formidable opponents if the measure makes it to the ballot.
The measure would need voter approval because Republicans refuse to back it, and state law requires a two-thirds majority in the Legislature to raise taxes.
To get around them, Schwarzenegger and the Democrats hope to pass the measure in concept, with a simple majority of Democrats, then ask voters to approve the funding next year.
Most groups, including labor, business and doctors, said they could not comment Friday because they did not yet know all the details.
Schwarzenegger and the Democrats wrangled for months over how much employers should pay. The governor finally agreed to raise the amount for firms with the largest payrolls, while reducing the amount for smaller firms.
But while the governor’s original plan would have exempted firms with fewer than 10 employees - about 80 percent of businesses - the new plan affects all businesses.
Under the sliding scale payroll fee, firms with payrolls over $15 million would pay 6.5 percent. Those with payrolls under $250,000 would pay 1 percent.
Another big issue has been how far to go in subsidizing low- and middle-income people, to help them afford their insurance premiums.
Labor unions pushed hard for higher government subsidies, and Democrats got the governor to increase the amount of assistance in his plan. But that also helped drive the cost up by $2 billion.
Before they take on the $14 billion budget, they saddle business with more taxes, and cigarette comsumers with additional costs.
Hello black market on cigarettes. Police agencies across the state will now have to fight contraband cigarettes.
It’s time for a recall! Get this mother f—ker out of there now!
Let me do the math for you... 14b +14b =42b deficit. At least he is not raising taxes. Fair Opinion herself said Arnoid would never raise taxes...
more hand outs for the poor...it is taxing to listen to this sh*t.
But most folks also seem to forget
He's also single handedly has pushed for and supported the tripling of this state's long term debt and then some,,
Fade to Gray..
and now this..
How does one spell relief these days?
R e c a l l
Frankly, I am sick of him and that democrap legislature.
I am so disappoint with Arnold
HEY ARNOLD quit it or you may be recall better YET if you do they are casting for terminator 4
I think that Kennedy influence that making Arnold to do this
While we’re at it, let’s put the name of every person in the state senate and legislature on a separate recall. It’s time to fumigate Sacramento. There’s an infestation that must be dealth with post haste.
There are no words to describe this lunacy. Ya’ll laugh, but I’ll take Louisiana any day over this.
“Shades of Gray Davis” (déjà vu all over again) ^
http://www.freerepublic.com/focus/f-news/1939788/posts
I just fired off a blistering condemnation of this healthcare plan and said I was demanding a recall. I told him I had defended his a— for the last time.
“You can’t leave office soon enought.”
RD
I’m going to burn that phone off the hook on Monday morning.
We ought to fill up the answering machine over the weekend too.
When they come in Monday morning, they should be on notice that we’re not going to take this bull s—t any longer.
I’m furious over this.
Schwarzenegger is completely off his rocker. He’s spent the state into a 14 to 18 billion dollar hole and he’s STILL hell-bent on craming this outrageous illegal alien health insurance bill down our throats.
Looks like the big strong Terminator has turned into a squeaky little girlie man.
This is the man that told you he would be fiscally responsible and set things straight in CA.
You can’t say you weren’t warned.
Thanks for the link - I made good use of it.
I’m beginnig to long for Gray.
You know it has to be a horrible bill if Arnold AND the democrats are "working together". I think it was Thomas Sowell that said bipartisan bills are ALWAYS bad, because they take the worst from both parties and inflict it on the taxpayers. At least if there was a dem governor there would be some honest opposition from the republicans.
I don’t know what all this means but it sounds like California is attempting financial suicide.
No wonder they say 4 million people are leaving California
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