Health Reform Financing Initiative Filed
[Posted 01/07/08]

Assembly Speaker Fabian Nuñez and Gov. Arnold Schwarzenegger have formally filed an initiative intended to appear on the 2008 ballot that would finance their $14.4 billion health reform package. Their reforms, passed by the state Assembly last month, would only take effect if voters also pass the ballot measure.

The initiative would, among other things, raise the state tobacco tax to $1.75 a pack and require employers to dedicate up to 6.5 percent of their payrolls to cover employee health care or pay into a state-run insurance purchasing pool.

The reform package must still be taken up by the Senate. Senate President Pro Tem Don Perata has indicated that the Senate will not do so until Governor Schwarzenegger announces his proposed 2008-2009 budget (January 10) and the Legislative Analyst Office’s releases its analysis of the financing plan (likely some time the 2nd or 3rd week of January).

Perata is taking a more cautious approach to health reform. “When major legislation passes with great fanfare, it’s easy to get caught up in the moment, play to the cameras, and quickly go along,” Perata said. “It happened when the state enacted energy deregulation – only to create a crisis from which we’ve yet to fully recover. That’s not something I intend to repeat, especially on an issue as crucial to our state as the health of its citizens. The Senate will debate and act on health care reform when we have the facts to be sure we’re getting it right.”

CMA is already working closely with Senator Perata to address the deficiencies of the current proposal and make needed improvements. 

Contact: Dustin Corcoran, 916/444-5532 or dcorcoran@cmanet.org.