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New Bill AB X1 1 Provides Affordable Health Care; IOH Lobby Day

November 12, 2007
During a press conference on Tuesday, November 6, Assembly Speaker Fabien Nunez and Senate President Pro Tem Don Perata announced an exciting new proposal for health care reform, Assembly Bill X1 1 (the first bill in the first extraordinary session of the legislature).  The new proposal responds to the issues Governor Schwarzenegger raised about Perta and Nunez’s initial bill, AB8, which the Governor vetoed on October 12th. AB X1 1 would extend affordable coverage to a larger number of Californians by providing subsidized coverage through a state run purchasing pool and increasing public programs. The bill would also be financed through a variety of venues, including an individual contribution, an employer contribution, a hospital tax, and a $2-per-pack tobacco tax. Importantly, AB X1 1 requires Californians to have coverage but only if coverage is affordable: AB X1 1 includes an affordability clause, which requires Californians to have coverage as long as premiums and out-of-pocket expenses do not exceed 6.5% of a person’s income. Individuals within the 6.5% requirement may also apply for a hardship exemption. What is particularly pertinent to artists about AB X1 1 is the bill’s expansion of both public health care programs and publically subsidized coverage to include individuals up to 450% of the Federal Poverty Level ($45,900). Under the new bill, public programs (such as Medi-Cal) would include childless individuals up to 250% of the FPL ($25,500 annual income) in addition to children and their parents up to 300% of the FPL ($51,624 annual income/family).  Individuals with incomes between 250% and 450% of the FPL ($25,500 to $45,900) would also receive a new tax credit to assure that costs of coverage received (including all premiums, co-pays, and deductibles) through the state run purchasing pool would not exceed 6.5% of an individual’s income. The expansion of publicly funded and subsidized health care programs to include individuals up to 450% of the FPL is particularly meaningful for artists as artists often make a comfortable living but do not have enough disposable income to afford health care without assistance; AB X1 1 provides assistance to individuals who fall into this category. Significantly, self-employed individuals are also considered in this bill, which is a big change from AB 8 and a great step forward for artists who are often self-employed or contract workers. AB X1 1 is a remarkable move forward from both AB 8 and the Governor’s proposal as it strives to create universal coverage, which AB 8 did not achieve, but considers affordability, which the Governor’s proposal did not fully address. AB X1 1was formally introduced on Thursday, November 8th and is expected to be heard on November 14th during the Assembly Health Committee convening; Nunez hopes to have a floor vote on the measure by the week after Thanksgiving.

It's OUR Healthcare has organized a Lobby Day on Wednesday, November 14th in Sacramento to show consumer support for AB X1 1. Artists United for Healthcare encourages all its members to join It’s OUR Healthcare this Wednesday to show our legislative leaders our support for AB X1 1 and for affordable health care reform this year. AB X1 1 is a great step forward for California's artists and for Californians in general; now is the time to show our support.