California Assembly Passes Health Care Reform

On Monday, December 17, the California Assembly passes, along party lines, a compromise health care reform bill, ABX1 1. The vote was 45-31.

The original bill to extend health insurance coverage in the state was extensively amended on December 13. The revised version represents a compromise between Assembly Speaker Fabian Nunez (D) and Governor Arnold Schwarzenegger (R).

According to the Bureau of National Affairs (BNA) Health Care Daily, Nunez would like to have the bill voted on and sent to the Governor by the end of December to allow sufficient time to get the financial aspects of the health care reform plan on the November 2008 ballot for voter approval. The bill is now awaiting action in the Senate where Senate Pro Tem Don Perata (D), co-author of the bill, disagrees with Nunez’ time assessment and wants to move cautiously due to the potential budget impact of the bill.

Surprised by a revised budget projection from the Schwarzenegger administration that shows the state potentially facing a $14 billion deficit for the fiscal year beginning July 1, 2008, Senate Pro Tem Don Perata has requested a legislative analysis examining the long-term fiscal impact of the health care reform legislation on the General Fund.

Perata is concerned the budget shortfalls could affect the General Fund and lead to cuts in healthcare assistance programs. The state now provides for low income families and the aged including Medi-Cal (Medicaid).

Labor groups including the California Nurses Association and some consumer groups have expressed concern/opposition to various portions of the legislation.

The amended bill can be accessed here

Also attached is an email update on the amended legislation.

December 19, 2007

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