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Healthcare reform next, governor tells AARP rally
Rich Pedroncelli / AP Members of AARP listen as Gov. Arnold Schwarzenegger calls for healthcare reform during an AARP rally in Sacramento on Wednesday.
SACRAMENTO — A day after lawmakers finally put to rest the long-delayed state budget, Gov. Arnold Schwarzenegger told about 1,000 AARP members at a Capitol rally Wednesday, "The next thing we're going to conquer is healthcare reform."
As the budget delay dragged into August, many observers feared the yearlong effort to expand healthcare coverage would be squeezed off the legislative agenda. But Schwarzenegger and Assembly Speaker Fabian Nuñez predicted Wednesday a reform bill would be approved before the legislative session adjourns Sept. 14.
"I can guarantee you we will get this done," Schwarzenegger said.
"I think we can do it," said Nuñez, D-Los Angeles.
Adding to the momentum was the release of a Field Poll that found 69 percent of California voters dissatisfied with the healthcare system in the state — up from just 44 percent nine months ago.
Over the next 3 1/2 weeks, Democratic legislative leaders and the governor must negotiate over significant differences in their two plans to broadly expand insurance coverage to include all or most of the state's 6 million uninsured residents.
Both plans rely largely on requirements that all employers either provide health benefits to workers or pay a fee into a state purchasing pool that would buy insurance for their workers. But the governor's plan also requires individuals not covered under the employer mandate, such as the self-employed and retirees not yet eligible for Medicare, to buy individual insurance policies on their own.
Additionally, there are significant differences between the fees contemplated — 4 percent of payroll under the governor's plan, 7.5 percent of payroll under Nuñez' bill. The Democratic plan would also provide a higher level of subsidies to low-income workers than is proposed by Schwarzenegger.
Those attending the rally, however, did not seem concerned with the details. Their message was more direct: Just do something, now.
That is the message AARP leaders asked those at the rally to deliver to legislators. As the rally on the Capitol lawn ended just after noon and workers passed out bottles of water from ice-filled barrels, state executive director Tom Porter told those in the crowd their mission was "to take the heat inside."
Among those in attendance was Dan Herlinger, the retired chief executive officer of St. John's Regional Medical Center in Oxnard.
"I know firsthand the urgency of fixing our system," Herlinger said.
He noted 10 Southern California hospitals have closed emergency rooms over the past five years because of financial losses caused by the flood of uninsured patients. They use emergency rooms because they are the only places they can receive care of any kind.
"It's a ridiculous distortion of how a healthcare system should work," he said.
After speaking at the rally, Senate President Pro Tem Don Perata, D-Oakland, told reporters he did not share the governor's and the speaker's optimism and suggested Schwarzenegger may have to call a special session in the fall to complete the job.
Perata said the challenge will be to bring additional revenues into the system in order to keep the fees charged employers to a minimum.
"The more revenue we can put into it, the more we can broaden the base," he said. "Seven and a half percent is a scary number. We have to be able to drive it down."
The Legislative Counsel's Office has issued an opinion that the employer fees do not meet the constitutional definition of a "tax" and thus could be adopted by a majority vote of the Legislature.
Other potential revenue sources would likely be considered taxes and would be subject to a two-thirds majority vote — a huge political hurdle because it would require the votes of at least a handful of Republican lawmakers who have vowed not to support tax increases.





Posted by cassandra on August 23, 2007 at 8:26 a.m. (Suggest removal)
the only sensible solution is to take away the problems in our current system--uninsured people, insurer abuse, protection of pharmaceuticals from group price competition and mind boggling complexity--single payor, everybody covered.
The Kuehl plan is the only solution that will work. The governor's plan sucks and will only intensify the current mess.
It is irresponsible and cruel to postpone going to the only system that will work. We will end up there anyway but people are suffering and dying in the meantime.
Posted by jskdn on August 23, 2007 at 10:33 a.m. (Suggest removal)
I disagree with the argument to "just do something, now." What is actually done matters. But there should an open, active debate over reform policies going on now and in the definitely-needed special session. The media needs to start reporting on the implications of policy alternatives so the public is informed and can weigh in on the debate. These are important issues that will affect the live of large segments of the population and they should understand what these politicians are doing.
On the other had, most Democrats actually support single-payer and failure of other reforms may advance that cause. The just released Field poll shows a gain in those backing single-payer and I think that may encourage just such a strategy.
Posted by cassandra on August 23, 2007 at 11:11 a.m. (Suggest removal)
Debate has been done. Repeately. The numbers have been crunched. The Legislature already passed the Kuehl bill. There was open active debate. The governnator vetoed.
Posted by dewhiteside on August 23, 2007 at 1:07 p.m. (Suggest removal)
Either the Swedish model (similar to Kaiser Permanente where all the pieces of healthcare delivery are owned by the same entity, but in Sweden it's the government) or the Dutch model (insurance and healthcare providers are private but they cannot exclude anyone from coverage and the government picks up the premium tab for those who cannot afford it) would work well in California or nationwide. We are the only industrail nation that fails to provide citizens with universal healthcare and we -- especially our business, political, and government leaders -- should be ashamed. Insurance companies, pharmceutical and medical equipment firms, and healthcare providers who refuse to support and participate in such a plan should be nationalized.
Posted by sslocal on August 23, 2007 at 1:45 p.m. (Suggest removal)
Tell me of a Gov. run program that works. Mark my words, when the impose a tax, and that is what it is, they not use all the money for its intended purpose. They will funnel it into some other "worthy cause" and will need to increase the tax because it "needs adjusting".
We need to enforce immigration laws so our ER's are not forced to treat folks that should not be here.
Yes we need to do something, but taxing the us is not the answer.
Posted by jskdn on August 23, 2007 at 3:12 p.m. (Suggest removal)
The Kuehl plan not just a change in the who provides insurance or what it costs overall. It's a change in who pays. What would be the change from what you pay for health care now and what the new tax would cost you, as she envisions it? As I understand it, employees share for Kuehl plan is 4% for employees, 8% for their employers, 12% for the self-employed, all on incomes of $7 to $200 thousand with a 1% surcharge over that.
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