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A comprehensive initiative aimed at addressing the broken healthcare system in California, providing affordable and accessible coverage for all residents. The proposed Health Care Security and Cost Reduction Act emphasizes prevention, shared responsibility, and cost containment to reduce the number of uninsured individuals, alleviate financial strain on families, and improve the overall health outcomes. The Act includes provisions such as the Individual Mandate, Guaranteed Issue, and Shared Responsibility to ensure that Californians have access to healthcare without being turned away based on age or medical history. By spreading the responsibility across individuals, employers, and the government, this initiative aims to create a healthier, more productive workforce and promote fair compensation for healthcare providers. The proposed plan has garnered support from a bipartisan coalition, including government officials, business leaders, labor unions, healthcare providers, and insurers, reflecting a united effort to reform the healthcare system in California. Despite challenges faced in legislative action, the initiative offers a two-phase approach focusing on immediate cost containment and prevention measures in Phase I, followed by coverage expansion and financing strategies in Phase II through a ballot initiative. This initiative represents a crucial step towards achieving affordable and secure health coverage for all Californians.
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Stay Well Afford Care Secure CoverageHerb K. SchultzSenior Advisor to Governor Arnold Schwarzenegger
A Broken Health Care System • 6.7 million uninsured • Stressed emergency rooms • “The hidden tax” • Rising health care costs • Chronic illness; poor health choices • Medical errors • Financial strain, bankruptcy
Overall Approach • Policy Bill • Financing by Ballot Initiative
Health Care Security and Cost Reduction Act • Prevention/Health Promotion/ Wellness • Shared Responsibility and Shared Benefit/Coverage for All • Cost Containment/Affordability
Affordable and Accessible Health Coverage for California • Requires all Californians to take responsibility for their health coverage (Individual Mandate). • Guarantees that no Californian will be turned away from buying insurance based on age or medical history (Guaranteed Issue). • Spreads responsibility across individuals, government, hospitals and employers (Shared Responsibility). • Makes coverage more affordable for individuals and families through tax credits and subsidies. • Helps keep hospitals and emergency rooms open by increasing Medi-Cal reimbursement rates. • Allows individuals to choose their health coverage and keep their current insurance.
Shared Benefit GOVERNMENT Healthy, productive & economically competitive state EMPLOYERS Affordable coverage Healthy, productive workforce DOCTORS & HOSPITALS Expanded insured population Fair compensation INDIVIDUALS Access to affordable coverage Health care security Healthier CA HEALTH PLANS Expanded market Fair compensation
Shared Responsibility GOVERNMENT Promote functional health care market Provide access to affordable coverage Fairly compensate Medi-Cal providers EMPLOYERSSupportemployee access to affordable coverage DOCTORS &HOSPITALS Provide affordable, quality care Share cost savings INDIVIDUALS Obtain health coverage HEALTH PLANS Guarantee access to affordable coverage Pass along savings
Historic Coalition of SupportRepublican Governor and Democratic Speaker 2,000+ Meetings: • Consumers – AARP, Consumers Union, Health Access, CPEHN • Business – Small, Medium, Big • Labor – SEIU, AFSCME, Carpenters • Providers – Hospitals, Doctor Groups, Nursing Groups • Insurers – Kaiser, Blue Shield, Health Net
Legislative Action • Assembly – Passed December 17, 2007 • Senate Health Committee – Did not pass January 28, 2008 • Budget Deficit • Financing/Cost of Plan
Where Do We Go From Here? • Two-Phase Comprehensive Approach • Phase I – This Year (Legislative) • Cost Containment • Prevention • Consumer Protection • Phase II • Coverage Expansion • Financing (Ballot Initiative)