Schwarzenegger To Campaign for Effort To Repeal Employer-Sponsored Health Coverage Law
Gov. Arnold Schwarzenegger (R) will encourage state residents to vote "no" on Proposition 72 to repeal a state law (SB 2) that will require some employers to provide health insurance to employees, a spokesperson for the governor said, the Sacramento Bee reports (Mecoy, Sacramento Bee, 10/21). Proposition 72 is a referendum on the Nov. 2 statewide ballot that asks residents to vote "yes" to uphold or "no" to repeal SB 2.
Under the law, which is scheduled to take effect Jan. 1, 2006, employers with 200 or more employees will be required to provide health insurance to workers and their dependents by 2006 or pay into a state fund to provide such coverage.
Employers with 50 to 199 employees will have to provide health insurance only to workers by 2007. Companies with fewer than 20 workers will not have to comply with the law, and the law also will exempt employers with 20 to 49 workers unless the state provides them with tax credits to offset the cost of health coverage (California Healthline, 10/19).
Schwarzenegger spokesperson Rob Stutzman said that the governor in the time before Election Day would "focus on issues where he believes he can make the most difference," including Proposition 72.
Schwarzenegger said, "This month I consider the campaign month, which is to go around and support those issues that are very, very close to me and very important to me" (Sacramento Bee, 10/21).
Additional information on Proposition 72 is available online.