As of 1/07/08: Assembly Speaker Fabian Núñez’s (D-Los Angeles) and Senate Pro Tem Don Perata’s (D-Oakland) health reform proposal, ABX1 1, aims to significantly expand affordable health coverage for Californians, and incorporates several key elements from the vetoed AB 8 (Núñez) and the Governor’s proposal. The bill would establish an individual mandate to have insurance (with some exceptions for affordability) and creates a "pay or play" system for employers. Employers would be required to offer coverage or contribute 1 to 6.5% of payroll toward the cost of employees' coverage through a purchasing pool. ABX1 1 expands eligibility for public health insurance programs for children and parents. The proposal also aims to improve access to coverage on the individual insurance market, and has provisions to help contain health care costs.

Key financing components include increased federal funding, employer contributions and county contributions. Additional financing through a 4% hospital fee and an increase in tobacco tax is subject to approval of a ballot initiative, likely to be voted on in November 2008.

The Proposal

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

Status

ABX1 1 was introduced on November 8, 2007 in the special legislative session. The Assembly Health Committee passed the bill on November 14, and the full Assembly passed it on December 17. The Senate Health Committee rejected ABX1 1 with a 1-to-7 vote on January 28. (As of 1/29/07).

Official legislative information for ABX1 1: History and Status

Analysis

Rick Curtis, president of the Institute for Health Policy Solutions, summarizes key take-aways from the year’s health reform efforts. View his presentation (Webcast) or (PDF).

ABX1 1 did not receive enough votes to pass out of the Senate Health Committee on January 28. Read a nonpartisan analysis by economist Elliot Wicks, Ph.D. (PDF), which examines trade-offs in coverage, cost, fairness, and choice.   

Watch the Legislative Analyst's testimony on ABX1 1 and read her report on ABX1 1's likely fiscal impact. Or read an updated comparison chart (PDF) of the major reform proposals.

Senate Committee on Health, Committee analysis of ABX1 1 (PDF), 1/16/08. 

An economic analysis of ABX1 1 (PDF) by Jonathan Gruber, Ph.D. examines how many people ABX1 1 would cover and the type of coverage they would receive, and what the bill would cost.

Assembly, Floor analysis, 12/17/07.

Elliot Wicks, Ph.D., Framework assessment of ABX1 1 (Núñez/Perata) (PDF), 11/07. 

Additional Materials

Supporting materials from Senator Perata