Market-Based Reforms Should Be Considered

Health care could be a "central theme" of Gov. Arnold Schwarzenegger's (R) State of the State address in January 2007, an Orange County Register editorial states, noting that Schwarzenegger in 2005 and 2006 used the annual speech "to unveil new efforts."

The Register cites Schwarzenegger's veto of legislation that would have created a state-run, single-payer health insurance system as an indication that Schwarzenegger's health care reform proposal is unlikely to "go in that direction." However, the governor "might go for a scheme such as in Massachusetts," where a new state law requires residents to maintain health insurance coverage, according to the editorial.

Michael Cannon, director of health policy studies at the Cato Institute, told the Register that expanding health insurance coverage could be easier and done at a lower cost by:

Eliminating some coverage mandates for health plans;
Permitting California residents to purchase health insurance coverage from other states;
Extending state income tax exemptions to health savings account deposits; and
Easing restrictions on medical clinics administered by nurse practitioners.

The editorial concludes, "We hope the governor works to enact these four ideas -- and other free-market approaches -- before trying something involving more controls on citizens and higher costs to taxpayers" (Orange County Register, 11/21). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.