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Wednesday, November 7, 2007  

Will Schwarzenegger Provide an Affordable Health Insurance Plan for All?

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Democrats moved a step closer to a workable compromise with California Governor Arnold Schwarzenegger this week, offering hope that perhaps an affordable health insurance plan is on the horizon for the 4.9 Californians who don't have coverage.

At the San Jose Mercury News, officials stated that though they were pleased with a couple of key compromises, the two sides are still at odds over how much employers should pay to cover employees.

On Monday, Democrats accepted key elements of Schwarzenegger's plan, including a requirement that everyone have a health insurance policy. They also lowered the amount employers would be required to pay.

However, though everyone agrees that an affordable health insurance plan is much needed, most unions and small business organizations are still opposed. And those unions and consumer groups have been attacking the mandatory insurance requirement in Schwarzenegger's plan for months, saying it is unfair to force everyone to buy insurance when premiums are rising so much faster than wages or inflation.

It's not clear how this situation will be resolved: employers can't afford to offer comprehensive coverage to employees, employees can't afford to purchase coverage themselves, and no one wants more taxes. But one thing is clear, an affordable health insurance plan made available to all would lower medical debt, cut health care spending, and make a lot of people very happy.

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