The state will help those who are not insured to
obtain coverage. Employers who
do not provide health coverage for their employees would pay four percent of
their payroll into a state fund to cover the uninsured. By federal law,
undocumented immigrants cannot be denied medical care. The state wants to shift their use of hospital
emergency room care to using doctors by making personal insurance more
affordable to undocumented residents. The governor’s plan will stop
insurance companies from denying coverage based on health status or age. The
plan will require that 85
percent of insurance premiums go to patient care, not into the coffers of
insurers, health maintenance organizations and hospitals. The Governors
proposal also Boosts Medi-Cal rates paid to doctors and hospitals.
This will
infuse an additional $4 billion in the program which covers low-income
Californians. Doctors would then be required ro pay a two percent dividend and
hospitals, four percent back into a state fund to meet the needs of those who
can't afford care coverage. The governor also wants to promote healthy
lifestyles and preventative care by implementing an incentives and rewards
program for private and public employers who find ways to encourage healthy behaviors
among employees. Schwarzenegger says his plan is not another state-run program
but guidelines to provide and make health care affordable for California
residents. Some Republicans oppose the plan, calling it a "job tax."
“Imposing a costly new jobs tax on small businesses will do nothing to reduce
our state’s uninsured population and will only cause thousands of hard-working
Californians to lose their jobs,” Assembly Republican Leader Mike Villines
said. “We can solve
California’s health care challenges if we act responsibly and focus on solving
real problems, while resisting the temptation to embrace overreaching solutions
and the failed ideas of the past.” Villines said lawmakers should make
it a priority to help small businesses better afford health insurance for their
employees.
Democratic Assembly Speaker Fabian Nunez praised the plan, saying it has a lot in common with one the Democrats had already written. He said he was especially pleased to see the governor was calling for health care for all children.“The courts have ruled undocumented kids must get emergency care. Spending a little to keep them healthy would save us a lot in expensive emergency care and free up badly needed space in emergency rooms," Nunez said. "You’d think saving money and lives would be something Republicans in the Legislature could get behind. And I hope they will.”