California Health Insurance Slow to ChangeJanuary 2008
While California Governor Arnold Schwarzenegger recently hailed a breakthrough in his attempts to offer affordable
California health insurance to all state citizens, a new glitch might just delay his plan for quite awhile.
The biggest issue at hand in terms of the fight for affordable insurance is how much employers should pay for their employee's medical insurance coverage. With costs as high as they are, many employers fear that they just can't afford to offer insurance to their workers, or at least can't offer the kind of coverage that people need. The city of San Francisco had tried to mandate that employers spend a certain amount of money on medical insurance coverage for their employees. However, a district judge found that this violated the Employee Retirement Income Security Act (ERISA), a 1974 federal law that has preempted healthcare initiatives across the country.
And now it's standing in the way of California health insurance.
The law in question prevents state and local government from interfering with employer-provided benefits, and will likely make Schwarzenegger's plan difficult to pass.
But on the bright side, the California plan has some things working for it. While it would require that employers make "contributions" of 1% to 6.5% of the wages paid to employees, employers can deduct the money they spend on employee
medical insurance coverage, wellness programs, or other types of health assistance.
And the plan also relies on a $1.75 per pack hike in cigarette taxes and new fees on hospitals.
Facts on:
Medical Insurance Coverage News
Did you know...
There are more than 6.5 million uninsured Californians?
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If Schwarzenegger's California health insurance plan is challenged in court based on ERISA, this variety of revenue streams, combined with the fact that it must be ratified by voters through a ballot, might just bring push the plan through after all, making affordable health insurance available to millions of Californians who need coverage.
In the mean time, those seeking coverage shouldn't wait, since legal battles can be long and drawn out. Consumers need to shop around for the best prices, and always opt for a plan that allows for yearly checkups to prevent those sicknesses that are preventable with proper care.
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