Governor announces landmark health care reform initiative

Governor Arnold Schwarzenegger announced this week a plan that he says will provide accessible, efficient and affordable health care to every Californian.  While the Governor is to be commended for raising an important issue, it is unfortunate that much of the burden to fund such a plan would be on the back of California’s employers. 

While the plan has some good elements to it, CALSAGA is mainly concerned that the initiative requires employers with 10 or more employees who do not offer health care coverage to pay a 4 percent payroll tax to a state fund which will provide health care for those who do not get it through work.  CALSAGA views this “pay-or-play” mandate as an unfair tax on California businesses and could have a detrimental effect on our State’s economy.

Businesses with less than 10 employees would be exempt, as would employers of 10 or more who currently pay more than 4 percent of payroll toward health care.

CALSAGA believes that any health care reform should include a plan to reduce the overall cost of health care.  In recent years, health care premiums have skyrocketed, which in turn has limited choices of both employers and their employees.  More businesses would like to offer health care benefits, but rising costs are making it extremely difficult to do so.

This week’s announcement by the Governor is just the beginning of what should be an intense debate this year.  CALSAGA looks forward to participating in the discussions and will monitor the situation closely.

You can access the talking points of the Governor’s new health care reform initiative by clicking here.