The Democrats United Plan: No Individual Mandates

by Julia Rosen [courtesy of Working Californians blogs]

The Capitol has been buzzing for weeks about the two Democratic leaders working to combine their health care plans into one bill. Today Assembly Speaker Nunez and Senate Pro Tem Perata announced the details of the new bill, which grabs features from both leaders legislative proposal. This is the start of a new period in the push for health care reform. Now we have on proposal that the legislature can use to negotiate with the governor's office at is is known as AB 8.

Here are two big details.

• Employers my spend at least 7.5 of payroll costs on health care. This requirement extends to all employers regardless of size. Self-employed individuals are exempt.
• No requirement that every resident purchase health insurance (aka individual mandates).

More details should trickle out in the upcoming days, but these are the two biggest bones of contention with the governor. Arnold had proposed that 4% of payroll go to health care insurance, which is woefully inadequate and below what most employers who contribute to health care spend. Earlier today Arnold, anticipating this announcement gave a press conference on health care.

At a separate morning news conference in Sacramento, Schwarzenegger praised lawmakers for moving forward but said, "The only way the healthcare reform is going to work is if you have mandatory healthcare insurance."

Nunez countered during his press conference (see video below)

We also take out the requirement in the bills that everybody must be covered. We know that there is a difference of opinion with the administration, with respect to that. But the reason we decided to pull that from the bill is that we need more time to figure out whether or not there is an affordable health care product for the average worker in California and their families.

We want to make sure that even people who make above 300% of poverty, but are still middle class families can afford at the end of the month to make a premium payment that is consistent with them being able to afford to have a dignified life. And not have to dig to pay 30 or 40% into their monthly budgets in order to to that.

It does not appear that this proposal has enough regulation of the health care insurance industry or an expanded affordable governmental plan that anyone could buy into to guarantee affordable insurance to the middle class. Without that it is unacceptable to require insurance. This will be a huge battle with Arnold.

Back to Arnold's press conference:

He downplayed the significance of the Democrats' legislation, saying the final outcome would be worked out in private negotiations and could turn out dramatically different.

"What you see now is not really what counts," he said. "What counts is the outcome. And it can turn very quickly."

This is posturing, trying to make his plan appear more viable. This is actually a very significant step, setting up a benchmark for negotiations, and a framework of the most important concepts for Democrats. They have staked out their territory.

The Democrats most likely will not be able to get a super majority to override a gubernatorial veto, though they did indicate today that they will reach out to their Republican counterparts. That will be a tough sell, thus the dynamic of private negotiations between the Democrats and Arnold. Meanwhile all sides will work to influence the negotiations or in the case of Blue Cross try and scuttle. It is an enormously important and complex issue and negotiations will be contentious.

Nunez indicated that the Democrats hoped to pass this bill by July 11th setting up negotiations over the summer with Arnold, which could bleed into th fall.

Video of Nunez and Perata's press conference.

(see also dday)