CALIFORNIA HEALTHCARE REFORM ON HOLD AS TALKS CONTINUE
BestWire Services - Dec. 7: A planned vote on comprehensive health-care reform legislation in California came and went without action, as Democratic leaders and Gov. Arnold Schwarzenegger remained unable to forge a compromise.
Assembly Speaker Fabian Nunez had scheduled his Democratic bill for a vote on Dec. 5 or Dec. 6, but he did not call the body into session. We are continuing to negotiate with the administration and stakeholders and are optimistic we will have an agreement soon, Nunez spokesman Steven Maviglio said.
The Assembly Health Committee on Nov. 14 approved AB 1X, sponsored by Nunez and Democratic Senate President Pro Tem Don Perata by a party-line 11-4 vote.
The bill aims to expand health insurance to cover the state’s millions of uninsured, in part by tripling cigarette taxes to $2.87 per pack and requiring businesses to spend up to 6.5% of payroll on health care or contribute to a state fund. It also includes a fee assessed on hospitals at 4% of revenue.
Schwarzenegger, a Republican, vetoed an earlier bill, saying it placed too high a burden on employers and didn’t cover everyone in the state. The number of Californians without health insurance has been estimated at about 6.7 million. Under that bill, employers would have been required to contribute 7.5% of Social Security wages toward their workers’ health care or pay an equal amount to a state fund that would provide coverage. Unlike the governor’s initial proposal unveiled in January, the measure did not mandate that individuals buy health insurance.
Alan Katz, vice president of public affairs for the California Association of Health Underwriters, said a compromise during the current special legislative session is increasingly unlikely. Both Nunez and Schwarzenegger have limited flexibility in their maneuvering, said Katz, who previously served as chief of staff to former California Lt. Gov. Leo McCarthy.
If the governor moves too far toward the Democrats position the business community will balk. If the speaker moves too far toward the administrations position, hell lose the support of the unions and their allies, he said.
One significant stumbling block is in financing. Schwarzenegger is calling for raising funds by “leasing” the state lottery to a private operator in lieu of new tax mandates. Another is the state budget, which could be running a major deficit by the end of the fiscal year.
If a compromise health-care reform bill is reached, its financing provisions would still have to be ratified by voters in a November 2008 ballot question.