Health Care Bill Advances
The Democratic health care bill, AB 8, passed a Senate panel yesterday, moving its way towards the Senate floor. Described as a "work in progress" by its author Fabian Nunez, the legislation is conditionally supported by a group of labor unions and consumers groups.
“While this is not a perfect plan, we believe it is a thoughtful plan that will help pave the way for comprehensive reform,’’ he said. “…Clearly there is no greater issue of state interest or urgency that we can be working on today than improving on our fragile health care system. This is a rare opportunity we have….we need to act now. We need to take advantage of the opportunity we have before us.’’
Senate President Don Perata said it was important to move AB8 this year, but indicated that his preference was a national solution. “There’s no doubt that we ought to have a national health care program… It’s scandalous that a country like ours is woeful in the way it treats and responds to people who are in ill health,’’ he said. “Until that day comes, California must provide leadership, not unlike what we did with AB32,” last year’s global warming bill.
It is unlikely that this bill will be put in front of the governor in its current form. Amendments will continue to be heard and soon the negotiations with the governor will begin. Anthony Wright has a good run down of the amendments that were heard yesterday.
The bill, AB8, was approved by the state Senate's Health Committee after a two-hour debate that attracted about 50 witnesses. The bill needs approval from one additional committee before it can be considered by the full Senate -- action that is expected to take place in the coming weeks.
It would also need approval from the state Assembly.
Over five hundred people attended yesterdays long hearing, where those 50 witnesses spoke. The outcome was already well known but the hoopla is indicative of the importance of this piece of legislation. All of the groups were able to lay out their positions on the bill, which will be sure to be factored into the negotiations.
Meanwhile, Arnold was still talking about his plan, which was never turned into actual legislation.
The governor, speaking at an event in Los Angeles Wednesday, said he was looking forward to the talks.
"My favorite proposal is our proposal, because it spreads it out," he said. "I think it is important that we spread out the responsibility."
AB8 does spread out responsibility. Employers without health care plans would be required to pay a 7.5% fee based on payroll to purchase insurance for their workers. Employees would be required to pay 4.5% of their salary toward coverage. Arnold on the other hand, would only require 4% from businesses, well below what most employers currently pay. It is a recipe for employers to drop their health care contributions.
Meanwhile, there are two competing studies about the impact of AB8 on job creation. Plus, the Republicans are running around trying to scare people about the bill, in the hopes of killing any reform. Today, Arnold has a webcast on health care, so we should see another round of stories on the issue in the morning. Things are chugging along, on schedule.

