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From: "Lynn Huidekoper" <lynn_huidekoper@hotmail.com>
To: lynn_huidekoper@hotmail.com
Subject: SB840 is now going to Arnie's desk-passed the Senate(2nd time)
Date: Fri, 01 Sep 2006 03:53:19 -0700

SB840 passed the Assembly on Monday by a 45-30 vote. The 3 Democrats who did
not vote due to abstention, absent or not voting were: Ronald Calderon, Fran
Pavley(a Co-Author) and Nicole Parra. Joe Nation voted Yes!!
It then went to the Senate Conference Committee because there were 2 new
amendments: the Health Commissioner will be appointed by the Governor(rather
than elected) and there will be a commission of economists,etc. to work on
the financing of 840.
Here's the Press Release by Sen. Kuehl's staff which shows the Senate
approved the amendments. It needed a simple majority to win which would be
21 votes. They got 24. Hopefully the one Dem. voted for it. Last year the
same Senators voted 25-15 for the original version of 840. There are 25 Dems
and 15 Republicans.

For Immediate Release
August 31, 2006

CALIFORNIA STATE LEGISLATURE APPROVES MAJOR STATEWIDE HEALTHCARE INSURANCE
REFORM
CONTACT: Sara Rogers 916 445 1353 or Robin Podolsky 916 445 1353

On August 31, 2006, the California State Senate approved and sent to the
Governor SB 840, authored by State Senator Sheila Kuehl (D-23) by a vote of
24-12 (final vote of 25-15 expected). SB 840 will insure that every
Californian has comprehensive health coverage; guarantee the right of
patients to choose their own doctors; allow California to use its purchasing
power to negotiate bulk rates for prescription medication; and control
healthcare costs. Governor Schwarzenegger has until October 1 to sign the
bill into law.

This is the first time in the history of California that both houses of the
Legislature have passed a comprehensive healthcare reform of this magnitude.
SB 840 replaces the current maze of public and private health plans with a
single, efficient claims and reimbursement system, bringing down the
administrative costs of healthcare in California from about 30% to less than
5%. This will free up billions of dollars for patient care, thus making it
possible to provide, as SB 840 does, each resident of the state with
medical, vision, dental, hospitalization and prescription drug benefits.
The savings realized through negotiating bulk rates on prescription drugs
and medical equipment are projected to add another 2 billion dollars to
California's available funds for healthcare.

The plan is funded by drawing in current public spending and replacing all
premiums, co-pays and deductibles paid to insurance companies with premiums
paid to the system. As amended, the bill creates a blue ribbon panel of
health, finance and technical experts to lay out the mechanics for an
affordable premium structure using information gathered in available funding
studies. The bill is based on a model, generated by the Lewin Group, an
independent medical cost/benefit analysis firm, which demonstrates that if
individuals and corporations are assessed a single yearly premium, based on
income, the program could be fully funded, while providing substantial
yearly savings for most individuals and businesses that now pay for health
benefits. That yearly premium would take the place of all current premiums,
co-pays, deductibles and out of pocket expenses.

"I wish to thank my colleagues in the legislature for their leadership in
this historic vote," says Senator Kuehl. "For the first time, the
legislature has approved a reform that would provide every Californian with
the health coverage we need, while securing our right to choose our doctors
simply and control costs. This is a very different approach from those that
would require us by law to buy the insurance industry's products without
changing the conditions that result in double digit increases in our
premiums-and decreases in our coverage-every year. SB 840 will make quality
healthcare available to each of us while preserving our freedom of choice as
consumers and patients. I urge the Governor to do the right thing and sign
this bill."

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