California Gov. Schwarzenegger Considers Health Care Legislation Ahead Of Tuesday's Deadline For Approval

Main Category: Health Insurance / Medical Insurance
Article Date: 01 Oct 2008 - 10:00 PDT

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As California Gov. Arnold Schwarzenegger (R) considers legislation that "would expand what insurers are required to pay for, [he] must balance improved medical coverage -- for those who have it -- with the risk of driving costs so high that people can't afford it," the Los Angeles Times reports (Rau, Los Angeles Times, 9/29). Several of the bills approved by the state Legislature "take aim at what critics call some of the more egregious, but still relatively rare, practices in the health care system," including health insurance policy rescissions, balance billing and "excessive profits" of insurers, according to the San Jose Mercury News (Zapler, San Jose Mercury News, 9/27).

Other bills would expand services that health plans are required to cover, including mental illnesses and maternity services. A recent California Health Benefits Review Program analysis found that the proposed mandates would raise annual health insurance premiums by $383 million, or 0.5% of the $74 billion that residents and employers currently pay to insurance companies every year. The program, part of an office at the University of California that reviews legislative proposals, estimated that higher health insurance costs related to new requirements for maternity and mental health care could lead 3,200 people to drop coverage, and the Times reports that more state residents might turn to state-sponsored health programs for coverage.

It is unclear whether Schwarzenegger will sign or veto the proposals before Tuesday's deadline for action. Daniel Zingale, Schwarzenegger's senior adviser on health care, said that the governor is reviewing the bills cautiously after the Legislature earlier this year rejected his plan to overhaul the state's health care system. Zingale said, "There were hopes we would have a comprehensive package of prevention and cost-containment measures" (Los Angeles Times, 9/29).

According to the Mercury News, "Few expect a renewed push for sweeping health care reform in California soon," as the "state's fiscal woes threaten to remove hundreds of thousands of children from a state health insurance program and lower reimbursements to doctors who treat the poor" (San Jose Mercury News, 9/27).

The California Health Benefits Review Program report is available online.

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