California RNs Will Oppose New Health Bill, Blast Forced Insurance, Threat To Seize Wages, Failure To Control Costs Or Set Comprehensive Benefits

Main Category: Nursing / Midwifery
Article Date: 08 Nov 2007 - 3:00 PDT

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The California Nurses Association/National Nurses Organizing Committee said that it will oppose the latest healthcare plan proposed by Assembly Speaker Fabian Nunez.

"As more details continue to emerge, it is apparent that this proposal is riddled with flaws that could exacerbate the healthcare crisis for countless numbers of California families," said CNA/NNOC Executive Director Rose Ann DeMoro.

Individual mandate -- forcing Californians to buy insurance

"No matter how you dress up this proposal it still amounts to a huge windfall for the insurance industry, millions of new customers who may get virtually nothing in return," DeMoro said. And, anyone who fails to buy insurance would face "the draconian threat" of having the cost of insurance deducted from their paychecks. "Punishing the uninsured by seizing their wages to pad insurance company profits is not healthcare reform."

No comprehensive coverage

The state's Managed Risk Medical Insurance Board will establish the basic plan Californians would have to buy. But the plan is likely to only include a bare bones set of benefits, with probable high deductions and caps on coverage. All other medical care, such as dental, vision, mental health, long term care, and more would cost extra. "The likely result is that families with limited resources will self-ration rather than obtain needed medical care," DeMoro said.

Affordability

DeMoro criticized claims that the bill meets affordability standards as "a sad hoax for Californians desperate for genuine healthcare coverage."

1. Since the bill fails to set standards for basic plans, "it is likely families would be forced to effectively buy junk insurance, and have to spend thousands of dollars more for a long list of essential care needs."

2. The plan fails to reign in skyrocketing insurance premiums, deductibles, co-pays, or other rising costs. With costs continuing to escalate, there will be growing pressure on the MRMIB board to further erode the basic plan.

3. The supposed protection for middle income families is tax credits for the cost of buying the forced insurance. But tax credits only benefit those who can afford to buy insurance in the first place, and a once a year tax credit hardly makes up for costly monthly premium payments. The result will almost certainly be more credit card debt for medical bills; "a great boon for the banks and credit card companies but increased financial and health insecurity for Californians," DeMoro said.

4. The proposed out-of-pocket limit of 6.5 percent in costs applies only to the bare bones mandatory insurance policy - those with more comprehensive plans will pay much more of their income.

Employer mandate

The new bill makes the extensive problems of the earlier versions by the legislature and the governor even worse, said DeMoro. Under the bill the maximum requirement for employers would be just 6.5 percent of payroll.

But, according to a June 2007 report by the California Healthcare Foundation, California employers in 2005 paid on average 10.4 percent - and unionized employers paid 14.5 percent of their payroll - for health care benefits.

Especially as there are no controls on rising premium costs, what the bill thus does is create a clear incentive for businesses to sharply erode existing plans or drop coverage entire, DeMoro said.

Unionized employers, for example, would save nearly $5,000 per employee to dump their current benefits and pay the new tax. "Get ready for more strikes and other labor battles as workers struggle to maintain decent health coverage for their families," DeMoro said.

Funding plan is flawed

It relies on increasing tobacco taxes that was just rejected by the public in 2006, and on federal money that has been vetoed by President Bush twice.

The funding plan moves money away from public safety net hospitals many of which are already struggling.

California Nurses Association

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