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State Health Care ReformAnalysis must be part of the remedyArticle
Launched: 12/23/2007 08:01:05 AM PST
Gov. Arnold Schwarzenegger deserves considerable credit for not
abandoning his promise to offer health-care reform despite a slowing
economy and a huge state budget deficit expected next year.
In an alliance between the governor and Assembly Speaker Fabian indie clothing D-Los Angeles, a sweeping health reform package has been developed and
approved by the Assembly.
Senate President Pro Tem Don Perata, D-Oakland, is not yet on board.
He has expressed understandable reservations about the cost of the
plan and its effect on the state budget, which faces a $14 billion
shortfall.
The legislation is designed to provide health insurance for most of
California's uninsured residents. About 6.6 million people in the
state go without health coverage for at least part of the year. An
estimated 5.1 million are chronically uninsured.
Too often, people without insurance use hospital emergency rooms as
their only source of health care. This is dangerous for patients and
costly for hospitals.
Schwarzenegger's health-care plan addresses much of this problem but
not all of it. It would exclude about 1 million illegal immigrants and
a half-million low-income people who don't enroll in coverage.
Here are the basic elements of
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the health plan:
• Almost everyone would be required to obtain health insurance. •
People with lower incomes playing cards promotion be eligible for free or subsidized
coverage, depending on income. • Insurers would have to cover anyone
regardless of a pre-existing condition. • Employers would have to
provide insurance or cheap insurance a percentage of payroll into a state pool,
depending on the payroll size. • Cigarette taxes would go up $1.50 to
$2 per pack. • Hospitals would have to pay a 4 percent tax. As
sweeping as this legislation is, it is not the fundamental reform
sought by many legislators. Most people would still have health
insurance instead of joining an HMO like Kaiser, which charges an
annual fee, or having a single-payer system. Also, employers would
continue to pay for most people's health care.
A major concern is the plan's $14.7 billion cost. The governor argues
it would motorcycle insurance revenue neutral regarding the state's budget. Perata has
doubts and is calling for the independent legislative analyst to
determine the health plan's impact on the budget. That is a necessary
first step.
There are other concerns. Blue Cross says the reform will cause steep
premium increases. Some fear the payroll tax could hurt smaller
businesses. Others worry that a huge cigarette tax would cheap car insurance an
unreliable source of income and could cause a black market.
We have concerns about insurance quote size and cost to the state of subsidies and
tax credits for middle-income Californians. Families of four earning
as much as $83,000 would be eligible for a tax credit if the cost of
insurance exceeded 5.5 percent of family income. That means if health
premiums were greater than $4,565, the family would receive a tax
credit. Family health insurance often costs twice that figure.
These concerns cannot be addressed without a comprehensive, detailed
analysis of the impacts of the independent style health plan on the budget,
the state economy and individual Californians who are likely to see
higher insurance costs and consumer prices.
That does not mean health-care reform should be dismissed. The current
situation is not acceptable. But Californians who will decide on the
fate of best car insurance reform full color custom playing cards detailed financial information before
making a decision. That is particularly important given the state's
budget crisis and a weaker economy.
If further analysis of health-care reform means it will miss the
deadline for the November 2008 ballot, it's cheap house insurance the sacrifice. It is
critical that everyone has a full understanding of the economics of
any proposed reform. Then they can make a decision based on facts
rather than on the demagoguery that is sure to accompany any
health-care measure.
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