California Health Insurance Reflects National ConcernsMarch 2008
Governor Arnold Schwarzenegger's attempts to rebuild
California health insurance may have failed this time around, but his plan, and the factors that may have contributed to his failure, are drawing parallels with our current national healthcare situation.
Schwarzenegger's failed plan would have required that all state citizens obtain medical coverage. But, in an effort to be sensitive to the rising costs of healthcare today, it also offered some alternatives to those who can't afford it.
For example:
- Those residents with incomes of up to 250% of the federal poverty level would've received state subsidies for their California health insurance coverage.
- And residents with incomes of up to 400% of the poverty level would have received variable tax credits to ensure that their
health care premiums would not exceed 5.5% of their incomes.
- Insurers would've been prohibited from denying coverage to California residents because of any pre-existing medical conditions.
The same ballot measure that would have provided funding for these proposals also included an employer's requirement forcing them to contribute to health coverage in varying amounts ranging from 1% to 6.5% of their payrolls, as well as cigarette tax increases and more fees for hospitals.
So why did Governor Schwarzenegger's California health insurance plan eventually fail? Mostly because of the hugh state deficit faced by Californians in the coming years. With a huge bill already on their plate, state lawmakers just couldn't justify paying even more for state health insurance, even when they wanted to.
And, it's this parallel between state and federal health insurance woes that's attracting attention on a national level. Schwarzenegger's plan is very much like the plans that have been touted by both Hillary Clinton and Barack Obama. And John McCain has shown some interest in offering tax incentives to make medical coverage more affordable. But, again like California, the record national deficit is a large roadblock to any health care reform, and will cost taxpayers more than they are already burdened with.
Facts on:
California Health Care
Did you know...
More than 47 million Americans live without health insurance, and millions more are under-insured and don't know it?
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So, what will happen? No one knows just yet, but Governor Schwarzenegger isn't taking his failure lying down. He plans to reintroduce an insurance plan some time in the next three years, after he's managed (we hope) to bring down the state deficit.
This could mean that we shouldn't hold our breath for a state wide, universal health care plan just yet. And in the mean time, consumers need to keep shopping around for an insurance plan, and don't forget to compare health insurance plans, so they can find one they can afford and that still protects them when they need it most.
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