California Labor Federation Votes to Support Health Reform Bill With Amendments

[courtesy of California Progress Report]

By Art Pulaski
Executive Secretary-Treasurer
California Labor Federation

As you may know, the California Labor Federation and its affiliates have been working hard all year to achieve real, affordable health care reform for California's working families. This week, the California Assembly passed a revised version of its latest health care reform bill, ABx1 1. At this point, we've voted to take a "Support if Amended" position. However, we still need to see the ballot initiative language (which would outline how the program will be financed) along with additional amendments to make the plan work for working families.

Here are some details about AB x1 1:

HIGHLIGHTS:

• Employers will contribute 1% to 6.5% of payroll (depending on the size of the payroll) towards employee health care.

• Employers who choose not to contribute directly to employee insurance will pay the same amount into a public purchasing pool. Their employees will get a 20 percent discount on premiums through the purchasing pool.

• The purchasing pool will also be able to negotiate discounted rates on prescription drugs.

• All children below 300% of the Federal Poverty Level (FPL) will be covered by public programs like Healthy Families or Medi-Cal. Legal adult residents earning less than 250% of the Federal Poverty Level (about $25,000 a year) will also be eligible for public programs.

• Families between 250-400% of FPL ($50,000-$80,000 a year for a family of four) will receive tax credits to help them pay their premiums.

• No one who is subject to the individual mandate could be denied coverage due to a pre-existing medical condition.

• Health care providers will be required to offer transparent, comprehensive information about the cost and quality of health care services to all purchasers, including our union trust funds.

• Health insurance companies will be required to spend 85 cents of every premium dollar on actual health care services, rather than profit and overhead.

• A public insurance option will be established to compete with private insurers.