Funding a Major Hurdle as California Lawmakers Take on Health Care
Lawmakers and health care stakeholders are debating the best way to help provide more health coverage and services for state residents without increasing the state's budget deficit, which is currently estimated at about $9 billion, the Sacramento Bee reports.
The Legislature is considering at least 11 bills that would require insurers to cover additional services, such as gynecological cancer screenings and orthodontic services for cleft palates.
However, Nick Louizos, a lobbyist for the California Association of Health Plans, cited an independent review of the 11 bills that found that the new coverage mandates would increase insurance costs by $2.7 billion. The review also estimated that more than 85,000 Californians would lose health insurance coverage because they could not afford the higher premiums.
The review was conducted by the California Health Benefits Review Program, which was created by the Legislature.
Anthony Wright, executive director of Health Access California, said the cost of most of the bills is nominal, noting that most of the new costs cited by health plans can be traced to AB 1774 by Assembly member Sally Lieber (D-Mountain View). The bill would require coverage of screenings for gynecological cancers.
Beyond new coverage mandates, Sen. Darrell Steinberg (D-Sacramento) maintains that the Legislature can adopt market reforms that will not increase the cost of health care. Steinberg has introduced a bill (SB 1522) that would require insurers to offer five "benchmark" plans in hopes of simplifying the process of selecting an insurer for consumers.
Assembly member John Laird (D-Santa Cruz) also has introduced a bill (AB 1) to expand the state's Healthy Families program to include children in families whose annual incomes do not exceed 300% of the federal poverty level.
Steinberg said the bill does not have a funding source but will "lay the foundation for expanding coverage in the future."
Gov. Arnold Schwarzenegger's (R) budget proposal would cut Medi-Cal provider rates by $790 million and reduce benefits by $134 million, including the elimination of dental coverage for three million people.
Daniel Zingale, a senior adviser to Schwarzenegger, said more Californians will be without insurance in 2008 but added that the governor is supporting efforts to reduce health care costs (Rojas, Sacramento Bee, 4/20).