Health Care Crisis

Several proposals to solve the country’s health care crisis are floating around at the state and

federal levels of government. A side-by-side comparison reveals that one of them stands out clearly as the best.

President Bush’s Proposal

Under the Bush plan, health insurance premiums would become taxable income. People who get employer-provided plans that cost more than $15,000 a year would face a tax hike if they failed to get cheaper

insurance.

Our Union-negotiated health benefits fall into that category. The president proposes tax deductions — $15,000 for a family and $7,500 for an individual, whether they purchase their own health coverage or get it from their jobs to help buy insurance.

A White House spokesman admitted that about 30 million Americans could have higher taxes under the president’s plan “if they didn’t change their behavior” —

meaning that they must give up an employer’s more generous health plan

in favor of a less-costly one. The plan’s proposed $15,000 income tax deduction for middle-class families would jeopardize both Medicare and

Social Security while failing to provide enough money to purchase real health insurance, which is projected to cost $16,500 for a family of four by 2009.

Gov. Schwarzenegger’s Plan

Under the Schwarzenegger plan, all people would be required to buy health insurance, whether or not they can afford it.

The plan calls for hospitals to pay four percent and doctors two percent of their gross revenue into a state fund to cover those who can’t afford to buy insurance. Lower-income people would be subsidized, but the middle class would not be eligible.

Insurance companies would be allowed to charge whatever they want. There would be no controls on raises in premiums and no requirements for

comprehensive or even adequate coverage. As a result, Californians would be saddled with high premiums, high deductibles and high co-pays for little coverage.

State Sen. Kuehl’s Bill

Under California State Sen. Sheila Kuehl’s proposal, eligibility would be based on residency in the state not employment or income.

No California resident would lose his or her health insurance through loss of a job, inability to pay insurance premiums or a pre-existing medical condition.

Her plan, which would create a

single-payer health care system in

California, was passed by the

legislature last year but vetoed by

Gov. Schwarzenegger. It was

reintroduced in February 2007.

This proposal makes sense for

working men and women in our state. It would save our economy billions of dollars. It’s important that we support real health care reform such as Sen. Kuehl’s single-payer system. Its enactment would make a significant difference in the lives of all Californians.