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California Health Care Reform by the End of Next Week?

By Hannah Beth Jackson

The issue of health care in California boils down to whether we’re going to get real reform through a single-payor system, like the Medicare system already in place, or just some adjustment to the current system that retains the health insurance industry as the primary beneficiary of our health care dollars, rather than patients who need the care and those who provide it to them.

The Gov wants to keep the health insurance industry in the play, even though they add nothing to the delivery of healthcare. Speaker Nunez and Senate Pro Tem Perata have proposed a compromise in the form of AB 8 as a sort of a half-way proposal.

The key stumbling block, no matter how they slice and dice the negotiations, revolves around how we’re going to pay for this system. Although the Kuehl bill, SB 840 is the most vetted and comprehensive proposal, the Governor has said he will veto it if and when it comes back to his desk for signature. He vetoed a similar measure last year, obviously not having read it, because his veto message completely mischaracterized the measure. That, of course, is no moment for this Governor, who like the President, doesn’t let fact get in the way of his grandiose schemes. Regardless, the Dems want to get something out to the public this year, even if it isn’t that helpful in revamping a system that is clearly broken and in need of a complete overhaul.

Unfortunately, the debate really hasn’t started in earnest until just this week, with the Governor realizing his ideas include a tax increase that his Republican colleagues won’t approve, no matter how much he insists. The Perata/Nunez proposal calls for employers to plunk a nifty 7 1/2 % of payroll into the fund, while the California Restaurant Association and other small business interests are suggesting an alternative that includes increasing the sales tax to fund the program.

There is a little something here for everyone, including a minimum employer contribution, an expansion of medical coverage to nearly all of the 4.9 million Californians without it. But it still requires all Californians to have health insurance, thus keeping the bloated insurance industry in the game. As a concession to those who believe that taking the insurance industry out of the process is the real key to reforming this broken system, the plan would make some effort to control the uncapped premiums they are able to charge while requiring them to reveal the costs of their services. This would hopefully generate competition and theoretically reduce their unconscionable profits and ability to deny health care for so many who do not “qualify” under their profit-driven models (such as those who have had the misfortune of having pre-existing conditions that the insurance companies refuse to cover).

There are several good articles on this issue, starting with the most updated analysis from the LA Times.

And analyzing the “dance” displayed this week in these negotiations (supporting the old adage that the two things you never want to watch being made are legislation and sausage) is John Myers, Sacramento Bureau Chief for KQED’s “The California Report”, in his 8/29/07 and 8/30/07 articles for Capital Notes.

Senator Sheila Kuehl, the architect of SB 840 and leading spokesperson for a universal, single-payor but private delivery healthcare system, has a thoughtful article questioning the race-to-finish proposal being hammered out by the Governor and Democratic leaders on this site.

Hannah-Beth Jackson is a former Assemblymember who served in the California Assembly from 1998-2004. She Chaired the Assembly Committee on Environmental Safety, the Committee on Natural Resources as well as the Legislative Women's Caucus.

After term limits and redistricting forced her out of office, she helped start Speak Out California and serves as its President. Speak Out California is a progressive internet site envisioned by California's progressive leaders to effectively craft the issues and messages that will encourage public participation in bringing new ideas and vision to California's political landscape.

Posted on September 04, 2007

Comments

http://www.brainyquote.com/quotes/quotes/o/ottovonbis161318.html

Laws are like sausages, it is better not to see them being made.
Otto von Bismarck

Posted by: publius at September 4, 2007 08:05 AM

Publius: That's one of my favorite quotes. I'll try not to use it too many times in the next couple of weeks.

Posted by: Frank D. Russo at September 4, 2007 08:49 AM

Ms. Jackson wrote:

"supporting the old adage that the two things you never want to watch being made are legislation and sausage"

My point is that it is an actual quote and not an "adage" as Ms. Jackson claims, which is defined as:

a traditional saying expressing a common experience or observation; proverb.

according to dictionary.com.

Posted by: publius at September 4, 2007 11:14 AM

My name is James Clemmons. I own Bob's Muffler & Radiator in Bakersfield, CA. I would like to comment on ab8 and the financial impact it would have on small business. I have 7 employees, like most small business owners I live day to day just like yourself. When I read other peoples opinions about the minimum impact that ab8 will have on small businesses I realize that none of these people actually run a small business. Ab8 will increase my payroll about $3000.00 dollars a month, that is $3000.00 dollars more that I can afford.

I cannot raise my prices because of all the businesses in my area that are hiring illegal aliens and are paying them under the table. They pay no taxes, workman’s comp, insurance, etc. Since I cannot raise my prices were is the additional money gong to come from? If all of a sudden you were hit with a $3000.00 a month bills what would you do. California is on the verge of running all the small businesses out of business. Have you noticed that there are no trucking companies based in California, they all left.

Do your want nothing but large companies and no competition from small businesses? This bill would leave me no choice but to lay off 2 or 3 of my employees and to try to make it with a smaller crew. Most of the small business owners that I have talked to have told me the same thing, and that they definitely have no intentions of growing any bigger. A lot of business owners have told me they will start cheating on there taxes, and pay there employees under the table to make ends meet. If you don’t have the money what else can you do?

I keep reading that it is a shared responsibility. If that is the case then take 7.25% out of the employee’s paychecks. Also, if what I am reading about health insurance is correct they expect premiums to triple in the next 5 years. Nobody is fixing the problem. The impact on small business would be enormous. You have no idea what you are talking about. My only hope is that Arnold will veto the bill. Remember businesses create jobs.

James Clemmons

Posted by: James Clemmons at September 5, 2007 07:22 AM

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