California's state assembly this week passed ground-breaking health legislation that promises to extend healthcare coverage to millions of uninsured California residents.
The plan, negotiated between Gov. Arnold Schwarzenegger (R-Calif.) and Assemby leaders, is now surrounded by questions and concerns from industry groups.
The bill faces an uncertain future in California's Senate, where a vote is expected after the holidays, and before the state's voters, which have not historically shown support for tax increases.
On a vote that followed party lines, Assembly Bill IX was approved by the assembly. The program would expand coverage to nearly 70 percent of the state's more than 5 million uninsured residents. It also would require most state residents to have health insurance by July 1, 2010.
Passage of Bill IX was attacked by several groups, including provider organizations.
The legislation is "the largest single tax increase in California history," according to small business lobbyists. The bill relies on an unspecified split of funds to absorb its tab, estimated at $14.7 billion. The bill relies on businesses to pay from 1 percent to 6.5 percent of their wages into a pool to support the initiative.
Republicans in the assembly proposed less-inclusive alternatives that would aim to improve access and affordability at what they said was lower cost.
The California Nurses Association blasted the legislation, calling it "even more flawed" than the existing system.
"The new healthcare bill passed by the California Assembly is a big Christmas gift to the insurance industry, with Gov. Schwarzenegger playing Santa by doling out public funds to enrich the state's biggest HMOs and insurers," said Rose Ann DeMoro, executive director of the CNA.
The nurses group contends that, under the new bill, insurers would gain millions of new customers who are either forced to buy insurance under a threat of having their wages garnished or having a lien placed on their property.
The group contends that the state's seven largest insurers support the bill, but that the payers still would be able to deny care and charges as much as they want for premiums.
Leaders in California's senate were reported to be asking for an independent fiscal analysis of the proposal, which is not likely to be fully released until next month.