Core Principles: |
January Proposal |
Health Care Security And Cost Reduction Act |
Universal Coverage |
Required all
Californians to have health insurance coverage. |
Maintains requirement
that all Californians obtain coverage, and strengthens provisions to
increase affordability for working families. |
Affordability |
Provided state financial assistance through a purchasing pool to Californians with incomes between 100-250% of the poverty level. |
Increases affordability for working families even further by reducing the amount that low and moderate income individuals will have to pay for coverage in the state subsidized pool, limits premiums based on income, and creates a tax credit for individuals/families between 250-350% of the federal poverty level. The legislation also
requires employers to offer employees IRS Code Section 125 plans. In
addition, employers and their employees who choose a Health Savings
Account health benefit product will receive tax savings consistent
with federal law. |
Guarantee Issue |
Required insurance to guarantee coverage, with limits on how much they can charge based on age or health status, so that all individuals have access to affordable products. |
Maintains guarantee
issue by ensuring that all Californians will be able to buy health
insurance regardless of their medical history or age. Phases in
elimination of medical rating and protects consumers against
significant rate spikes based on their health status by putting
parameters on what insurers can charge above or below a standard
rate. |
Financing |
Doctorfs
participation: Required that doctors contribute a 2% fee to
subsidize a purchasing pool for low income Californians and, in
return, receive more insured patients and higher Medi-Cal
reimbursement. |
The basic premise of
shared responsibility is that everyone who benefits from the reforms
must contribute in a meaningful way. Although doctors are no longer
required to contribute to the financing under the Act, they have
additional responsibilities and incentives to care for many newly
insured individuals. |
Employer
Contribution: Required employers with 10 or more employees
who choose not to offer health coverage to contribute an amount
equal to 4% of payroll toward the cost of employeesf health
coverage. |
Protects small
businesses by basing contributions on payroll. Under the plan
employers who do not offer health care coverage will make a
contribution based upon a sliding scale fee from 0-4 percent based
on their total payroll. | |
Lottery:
Not
included. |
The bill proposes to
lease the California Lottery to help pay for health care
costs. | |
Public Hospitals
|
Counties would retain
$1 billion in current funding (primarily for outpatient services)
and county and UC hospitals will retain $1 billion in federal
Disproportionate Share Hospital (DSH) funds and in addition, some
gsafety neth funds for primarily inpatient services. |
|
Minimum
Benefit |
$5,000 deductible
plan with maximum out-of-pocket limits of $7,500 per person and
$10,000 per family. |
Does not define the
minimum health insurance level. Instead, it directs the Secretary of
Health and Human Services to establish and adopt the minimum benefit
level via the regulatory process, which then cannot be changed
except by legislative action. The minimum benefit level must: cover
medical, hospital, preventive and prescription drug services;
promote access to care; and must be set at a level where premiums
are affordable. |