California Nears Universal Healthcare Vote

California legislators are expected to vote before Christmas on a health care reform package that would cover most of the state’s residents, according to a spokesperson for House Speaker Fabian Nunez.

“We’re working around the clock with the governor’s office and senate president’s office on reaching a compromise,” said Beth Willon. “I think it (the vote) will be sometime before Christmas.”

Republican Gov. Arnold Schwarzenegger and Democrats led by Nunez have each introduced plans that would implement a universal health plan covering most of the state’s residents.

Schwarzenegger, Nunez, and Senate President pro Tem Don Perata are in agreement on most of the particulars of a $14 billion plan, including a 4 percent fee on hospitals, provided that the fee is used for patient care, according to Willon and a spokesperson for the governor.

“The main sticking point is finance and affordability,” said Sabrina Lockhart, Schwarzenegger’s deputy press secretary. “We’re moving closer on affordability.”

The California Hospital Association has endorsed the fee proposal.

State legislatures, hospitals and the ARM industry are closely watching the outcome of California’s healthcare reform efforts. Industry experts and analysts say universal healthcare in the nation’s largest state would likely speed efforts by other states, and possibly the country, to require all Americans to have coverage. Many believe that a universal plan would reduce the number of uninsured and cause the annual amount of healthcare debt to drop significantly.

Negotiations among the California leaders now center on how much employers will contribute to the plan if they don’t provide coverage for their employees, both Willon and Lockhart said.

Democrats proposed that employers with payrolls of $350,000 or more spend at least 6.5 percent of their payroll on employee health care expenditures. The governor’s proposal calls for a 1 percent contribution on payrolls up to $250,000 and a 3 percent contribution on payrolls between $250,000 and $1 million. It limits the fee to 5.5 percent for employers with payrolls above $1 million.

“The sliding scale on employer fees is structured in such a way to protect small business,” Lockhart said, adding that past attempts at universal coverage put the entire burden on business. “He believes everyone needs to share in the cost.”

Nunez has contended that employers must pay a greater share to ensure the plan is affordable.
“There has to be more from them (employers), so all children can be covered and their parents,” Willon said.

If an agreement is reached on the California plan structure, it’s expected to pass both the Democrat-controlled House and Senate with a simple majority vote and that Schwarzenegger would sign it. Proponents say they would take the proposal to voters in a referendum next November. If that is approved, the law would go into affect in January 2009, Willon said.