Democrats Put the Money on the Table: New Numbers for Nunez and Perata Health Reform Plans

[courtesy of California Progress Report]

• Democratic legislative leaders release financial specifics on health care proposals
• Proposals would cover over two-thirds of uninsured; provide more security for workers
• Momentum for reform prospects, affordability for consumers and employers highlighted

By Anthony Wright
Executive Director of Health Access California

Over two-thirds of uninsured Californians would have health coverage under newly fleshed out proposals released by both Assembly Speaker Fabian Nunez and Senate President Pro Tem Don Perata Tuesday.

The new numbers show how each legislative leader's health expansion plan would be paid for and provide more specifics on how coverage would be provided. Under the notion of "shared responsibility," the proposals would set a minimum contribution for employers at 7.5 percent of wages (for both full- and part-time workers) toward worker health care; would create a statewide purchasing pool as a new option for employers to cover their workers; would expand public programs; would take advantage of federal tax breaks and matching funds; and would place new rules on insurers and reform the insurance market.

This is the first time that the legislative leaders have released the new figures since they both introduced their health coverage proposals in December, which were both aimed at increasing health coverage among California’s uninsured. The numbers fill in many blanks for AB 8 (Nunez) and SB 48 (Perata/Kuehl), and show how their measures would pencil out in the real world.

The Legislative leaders worked with MIT economist John Gruber (who also modeled Gov. Arnold Schwarzenegger’s proposal), funded by the California Health Care Foundation, to run their plans through a computer model, which came up with the numbers that showed the contributions needed in order to make the health plan balance out. Professor Gruber will be presenting his model tomorrow at the State Capitol.

Here's some information about the two plans with some of the new details: