Governor Arnold Schwarzenegger's Healthcare Reform Proposal
The following summary was derived from information released by the office of Governor Schwarzenegger: Gov. Schwarzenegger's plan is divided into three building blocks:
1. Prevention, health promotion, wellness
- Implement "Healthy Actions Incentives/Rewards" programs in private and public sector plans. This program focuses on prevention and wellness. Individuals can earn premium reductions, gym memberships, paid-for weight management programs, etc for engaging in healthy behaviors.
- Establish a national model for the treatment and prevention of diabetes.
- Prevent medical errors and healthcare-acquired infections Reverse obesity trends through nation-leading innovative and comprehensive strategies
- Continue the battle against tobacco use
2. Coverage for all Californians
- Require at least a minimum level of insurance (Individual mandate - the mandate includes a $5,000 annual deductible plan with a $7,500 annual out-of-pocket max for an individual. Plans can be bought in the individual market. HSAs are acknowledged as worthy options.)
- Facilitatesand enforce the individual mandate
- Guarantee Issue
- Provide low-income individuals affordable coverage
- Require insurers to issue health insurance (Employers with 10 or more employees who don't offer coverage must pay 4 % of payroll into state-administered "Health Care Services Fund" that will help pay for this initiative.)
- Increase Medi-Cal reimbursement rates significantly
3. Affordability and cost-containment, both short- and long-term
- Enhance tax breaks for individuals and employers for the purchase of insurance
- Enhance insurer and hospital efficiency
- Reduce regulatory barriers to more efficient health care delivery
- Reduce cost of delivering HMO products to employers and individuals
- Reduce the "Hidden Tax" everyone pays Other key components cited as necessary for ensuring long-term affordability:
- Utilize Health Information Technology
- Leverage state purchasing power through Medi-Cal
- Enhance healthcare quality and efficiency
Source: Press Release, 1/8/07; Governor's Health Care Proposal
This page was last updated on 4/17/2007
