As of 11/8/07: Governor Arnold Schwarzenegger's health reform proposal aims to provide affordable health coverage to all Californians. The proposal imposes a mandate that all Californians obtain health coverage. The Governor’s plan would require employers to offer coverage or contribute up to 4% of payroll toward the cost of employees' coverage through a purchasing pool. A purchasing pool would be established to administer premium subsidies and offer coverage.

Financing for the proposal is subject to approval of a ballot initiative, likely in November 2008. Key financing components include increased federal funding, employer contributions, a 4% fee on hospital revenue, county contributions, sliding scale individual/family contributions, and new revenue from leasing the state lottery. The proposal includes specific elements to help control health care costs.

The Proposal

Summary of the Proposal's Features The Full Proposal (PDF)

Status

Governor Schwarzenegger unveiled his concept for a health care reform plan in January 2007. His proposal was not introduced as legislation during the regular 2007 legislative session. On September 12, the Governor called a special legislative session to focus on health care. The Governor’s office released formal legislative language, introduced as ABX1 2. (As of 11/13/07).

Official legislative information for ABX1 2: History and Status

Analysis

Blue Sky Consulting, The Impact of Health Care Reform Proposals on California Counties, 10/1/07.

Legislative Analyst's Office, Governor's Health Care Plan: State Fiscal Risks (PDF), 2/15/07.

Jonathan Gruber, Ph.D. (MIT), Modeling Health Care Reform in California (PDF), 2/02/07.

 

Additional Materials

Assembly Committee on Health, Hearing agenda (PDF) and background (PDF) for the Governor's proposal, 10/31/07.

Senate Committee on Health, Informational Briefing: Governor Schwarzenegger's Health Insurance Proposal, 2/15/07.

Assembly Committee on Health, Background information for a discussion of "Health Care Reform: What Are the Choices?" (PDF)

Senate Committee on Health, Hearing on Schwarzenegger's proposal (video), 2/15/07. 

Assembly Committee on Health, Informational hearing on Schwarzenegger's proposal (video), 2/20/07.