CALIFORNIA: GOV. PROPOSES PLAN TO INSURE CHILDREN
California Gov. Pete Wilson (R) plans to introduce today aThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
$478 million "plan for expanding medical insurance to children of
the working poor" as part of the federal KiddieCare program,
Los Angeles Times reports. State lawmakers will then have three
weeks to reach an agreement before the Legislature adjourns for
the year. If an agreement is not reached, the children's health
initiative will "not be considered until next year." Even if
approved, the program will "not be implemented until next July,"
because no money was budgeted this year "to satisfy a federal
requirement that states contribute 35% of the program's cost."
WILSON'S IDEA
Wilson's proposal would cover the children of working-class
families, whose parents earn "too much to qualify for Medi-Cal
coverage, but not enough to receive employer benefits or to pay
for their own policies." The upper-income ceiling for a family
of four would be $32,100. Gov. Wilson is likely to "propose a
privately operated insurance pool." According to Wilson
officials, the California Children's Health Plan "would direct
the state to solicit bids from insurance companies interested in
providing the necessary coverage. A state panel would set
minimum benefit standards for the coverage that would include
dental plans and mental health counseling." The plan is modeled
after an existing California private insurance pool described as
"innovative and highly successful" (Lesher, 8/26).
COMPROMISE?
Democratic legislators and children's health advocates have
proposed a government-run children's health program instead of a
private insurance plan. Los Angeles Mayor Richard Riordan's (R)
Commission for Healthy Kids has suggested a "compromise between
proposals to provide coverage through the government-backed Medi-
Cal system and others that would turn that business over to the
private sector" (Newton, Los Angeles Times, 8/27). Senate
President Pro Tem Bill Lockyer (D) is also in favor of a
combination of public and private insurance initiatives. He
said, "California has a disproportionately large number of
uninsured kids and now we have a chance to extend health care
benefits. If there were one thing I could get done in my
remaining time in the Legislature, it would be to see these
health benefits extended to every kid in California." However,
Los Angeles Times notes that the differences between the Wilson
plan and the one advocated by Democrats may render it difficult
to develop a new program within the next three weeks (Lesher,
8/27).