Not so fast, Senators.
Insurance agents in California don't want state senators to get in a rush to pass Assembly Bill X1-1, the compromise health care reform proposal agreed upon by Gov. Arnold Schwarzenegger and Assembly Speaker Fabian Nunez.
Instead, agents are urging lawmakers to thoroughly review the bill and make changes the agents believe are necessary to bring affordable health care coverage for all residents of California.
The California Association of Health Underwriters (CAHU) and the National Association of Insurance and Financial Advisors-California (NAIFA-California)-with combined memberships of more than 8,000 businesses and individuals-have sent a letter to Senate President Pro Tem Don Perata and others outlining their concerns.
"The bill before the State Senate is complicated and complex," stated Neil Crosby, CAHU president, and Dennis P. Sunderman, NAIFA-California president. "Comprehensive health care reform is too important, and the stakes for Californians are too high, to push this legislation through without needed changes."
One of their objections to the bill is a provision that puts Californians who receive premium assistance in the form of tax credits into a state-run health insurance purchasing pool.
"The state doesn't require food stamp recipients to shop only at government-run grocery stores," Crosby and Sunderman explained. "Similarly, Californians receiving tax credits to help pay premiums should not be forced to shop only at a government-run health insurance store."
A second point of disagreement with the bill is the definition of "minimum health coverage." Agents also are urging senators to define what the "minimum health coverage" is that all Californians must obtain.
"Without a definition of the minimum benefits package, it's impossible to assess the impact this bill will have on individuals, employers, taxpayers, or on the state's precarious finances," Crosby and Sunderman said.
Third, the CAHU and NAIFA-California want senators to thoroughly review the funding mechanisms of the bill. They believe that the funding sources identified in the bill-specifically, an employer tax on payroll-will fail to keep up with the state's spending obligations for health care. "Californians . . . deserve a system that bankrupts neither families nor the state," Crosby and Sunderman concluded. "We applaud efforts by the Governor and legislature to achieve these goals, and we encourage State Senators to make these goals a reality."
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