In mid-November, the California Labor Federation announced it will support Assembly Speaker Fabian Nuñez’s new health care proposal, as long as certain amendments are incorporated.

Nuñez’s latest plan includes several elements from the labor-backed health care bill that the Governor vetoed in mid-October. However, the California Labor Federation is asking for amendments regarding affordability, employer responsibility and cost containment.

• Affordability. If Californians are going to be required to buy health insurance coverage, it needs to be a high quality plan with good benefits for a low cost. The cost of these plans must include premiums as well as out-of-pocket expenses.

• Employer Responsibility. The employer contribution must be adequate to finance quality health plans for all workers and to ensure the financial viability of the state purchasing pool.

• Cost Containment. Controlling high drug costs and other health care cost drivers are necessary in order to give low and middle-income families the cost control they need.

The State Assembly was expected to vote on the bill during a special session, following the Thanksgiving holiday. If passed, the bill would then head to the Senate.

“The California Labor Federation is appreciative of the Speaker’s constructive efforts and recognizes that the Governor has attached his political legacy to health care reform,” said California Labor Federation Executive Secretary-Treasurer Art Pulaski.

“However, only good health care policy will translate into good health care politics for the Governor. After meeting with our affiliates, we have concluded that we will support AB x11 if specific changes are made to ensure that the plan is indeed good policy for working and middle class families.”

In September, the state Legislature passed AB 8, the labor-backed health care reform legislation. This important bill would establish a minimum standard, like the minimum wage, for employer health care spending. It would also help control the out-of-control growth of health care costs.

But instead of signing the bill into law, the Governor opted to ignore the Legislature’s widely popular health care bill in favor of his own unpopular and regressive plan. He then presented his own unaffordable health care plan, which would impose an unfair financial burden on California’s middle-class working families. The Governor’s proposal requires everyone to get health insurance, even if they can’t afford to buy or use it. And employers would contribute as little as zero to four percent of payroll towards health care, heaving the financial responsibility of health care onto the backs of working families.

“Labor’s policy bottom-line is that we must have a plan that protects the economic bottom-line of California’s families: real health care reform must make quality health care more affordable,” said Pulaski.

On October 31, at a committee hearing on the Governor’s proposal, several Assembly members criticized the Governor’s health care plan as unaffordable for the middle class. Hundreds of union members and supporters also attended the hearing to show their opposition to Schwarzenegger’s plan.

In an attempt to reach a compromise with the Governor, Assembly Speaker Fabian Nuñez released a revised health care proposal on November 5th. Nuñez’s plan includes several elements from the labor-friendly health care bill that was vetoed by Schwarzenegger. It also includes some provisions from the Governor’s proposal.

The Governor responded with his own counter-proposal on November 8th. His newest plan made some attempts to address the affordability issue, but still fails to meet the needs of working Californians.

“There are several specific changes to the Speaker’s plan that working and middle class families will need if we are to have real health care reform. First among these is affordability,” Pulaski continued. “If we are going to require that Californians buy health insurance coverage, then we must make available high quality plans that provide good benefits for a low cost. The cost of these plans must include premiums as well as out-of-pocket expenses. Also, employer responsibility under this plan must
be adequate to finance quality health plans for all workers and to ensure the financial viability of the state purchasing pool.”

Pulaski pointed out that the legislation “must also tackle high drug costs and other health care cost drivers in order to give low and middle-income families the cost control they need. Working families need to know that their health care plans will be able to negotiate the best possible deal for prescription drugs.”

Unions, including the California Nurses Association, favoring a single-payer plan as put forward in SB 840 that eliminates private insurance companies from the health care system, are critical of the compromise that would still mandate that individuals purchase health insurance. Nuñez’s new plan may offer some exemptions to the individual mandate for those who cannot afford to purchase health insurance.

As Labor went to press Nov. 21, the Labor Federation was continuing its efforts to work with the Legislature on implementing changes on behalf of working families.

If the bill is approved by the Senate and signed by the Governor, the financing provisions will still need to be approved by California voters during the 2008 election cycle.

“We remain hopeful that these conversations will result in an affordable plan that provides all Californians with quality healthcare,” Pulaski said.

For more updated information on Labor’s position on the amended health care proposal and actions to take, check www.calaborfed.org.