Government
Calif. Democrats offer new health system reform bill
NEWS IN BRIEF — Posted Nov. 26, 2007
Democratic leaders in the California General Assembly released a legislative counteroffer to Gov. Arnold Schwarzenegger's health system reform plan early this month. The Democrats' new bill compromises a bit by lowering the mandatory employer health care contribution from a maximum of 7.5% of payroll to 6.5% of payroll. Businesses with $250,000 in payroll or more still would be subject to the higher percentage. Schwarzenegger prefers a maximum tax of 4%.
The bill still differs significantly from the governor's package because it proposes a $2-per-pack cigarette tax increase. Schwarzenegger proposes leasing the state lottery to a private entity to pay for a portion of his plan.
The California Medical Assn. welcomed the Democrats' new measure and said it supports increasing tobacco taxes to fund a health care expansion. "This proposal could break the logjam on health care reform discussions," said CMA President Richard S. Frankenstein, MD.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/11/26/gvbf1126.htm.
