Analysis of Governor Schwarzenegger's Legislative Language on Health Care

[courtesy of California Progress Report]

• Essentially the January Proposal: Individual Mandate, Public Program Expansion
• Some Changes Include: Tax Credit Intent; Revenues from Leasing the Lottery
• Lack of Movement on Key Issues, Including Affordability of Out-of-Pocket Costs

By Anthony Wright
Executive Director of Health Access California

At a Tuesday afternoon press conference earlier this week, Gov. Arnold Schwarzenegger released more than 200 pages of legislative language regarding his health reform proposal.

This is the first major release of additional detail from the Governor since January, when Schwarzenegger released a 10-page concept paper he viewed as a blueprint to health care reform in the state.

PROCESS: He said he hoped the conclude negotiations in the next few weeks, pass legislation this month, and then promote a November 2008 ballot measure that would have the financing elements which would pay for reforms and allow them to be enacted.

The language, he said, “reflects months of negotiations’’ and is the “product of more than a year of discussions and negotiations.’’ Schwarzenegger said he and Assembly Speaker Fabian Nunez have been negotiating heavily and feels “There’s a will to fix it. Therefore we will get it done.’’

In a statement, the Speaker welcomed the language, but did not agree to carry it. The press conference indicated that the proposal will likely be a “committee bill”—meaning a proposal without a legislative author.

Schwarzenegger emphasized that this draft released Tuesday was still a fluid document and the numbers and percentages would continue to change – particularly with respect to standards for affordability.

SUBSTANCE: Many features of the latest draft are similar to the initial concept paper the Governor released in January, with some tweaks.

LOTTERY: The biggest change, getting the biggest headlines, is the proposal to lease the operations of the state lottery, to raise about $2 billion/year to help finance the program.

The proposal also includes:

INDIVIDUAL MANDATE: