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AB X1 1 Passes Assembly and is Supported by the Governor

December 21, 2007
On Monday, December 17th, the California State Assembly approved a new version of AB X1 1 (Nunez) with a 46-31 vote along party lines with democrats for and republicans against the bill. Later that day, Governor Schwarzenegger, with Assembly Speaker Fabian Nunez by his side, spoke of his support of AB X1 1 at a news conference. If AB X1 1 becomes law, it would be the largest reform of a health care system ever taken by a state; AB X1 1 would extend coverage to nearly 70 percent of the state’s permanently uninsured, about 4 million people, and would require most Californians to buy health insurance.

AB X1 1 has changed since its initial version, but the framework is very similar. Public health care programs, such as California Healthy Families and Medi-Cal, will be expanded to include all children and their parents below 300% of the poverty lines ($62,000 annual salary for a family of four). In addition, public programs will be expanded to cover parents and adults without children below 250% of the poverty line($25,525 for an individual and $34,225 for a couple). Tax credits will also be extended to individuals and families between 250% and 400% of the poverty line ($41,000 for individuals and $82,000 for a family of four) so that they would only spend 5.5 % of their income on premiums. In addition, every Californian will be able to purchase health coverage without being denied because of “pre-existing” conditions. All Californians will also be required to have health coverage, unless an individual appeals the state and proves that the cost of health coverage would pose a financial hardship. While the individual mandate could be problematic for artists—artists are often self-employed and make enough income to disqualify them for public programs but not enough income to afford insurance on the individual market—there are several clauses in AB X1 1 that guarantee affordability of the individual mandate. In addition, it is significant for artists that individuals can no longer be denied from purchase health coverage because of “pre-existing” conditions. Artists United for Healthcare supports AB X1 1 and would like to congratulate the California Assembly and Governor Schwarzenegger for producing and supporting a plan for health care reform that will expand health coverage to such a great extent.

While AB X1 1’s passage in the Assembly is certainly a great move-forward, many lawmakers, including Senate President Pro Tem Don Perata, are questioning whether this is the right time to pass such an expansive reform with the recent news of a $14 billion deficit for the fiscal year. On Thursday, December 13, in an interview with CBS 5, Perata said he was “shocked” by the size of the budget deficit and that it would be “imprudent and impolitic to support an expansion of health care coverage” before tackling the budget. In this manner, Perata will not be calling Senate members to vote on AB X1 1 until January and has written to Legislative Analyst Elizabeth Hill this past Monday, December 17, asking her to assess the plan’s impact on the state’s deficit. Hill’s report will not be available until mid-January, at the earliest. If the Senate does pass and the Governor signs AB X1 1, which is likely based on his support stated in Monday’s press conference, voters would be asked to approve financing for the bill in November 2008. Most of the bill’s provisions will be affective as of July 1, 2010, suspect to available funding. In a recent LA Times article , the Times urged the Senate and voters to support AB X1 1 as a step towards improving our health care system; while this bill is not a perfect bill, it does provide a new and improved framework.