CNA/NNOC Opposes Latest Amended Version of Flawed Healthcare "Reform" Bill Before California Legislature

California legislators are expected to vote on the bill in the State Senate on Monday in the State Assembly on Tuesday. The bill parallels proposals made by Gov. Arnold Schwarzenegger in its reinforcement of the insurance-based system as opposed to a guaranteed healthcare plan that ends insurance industry profiteering and denial of care.

Schwarzenegger has said he will veto the bill in its current form – and Nunez and some others are expected to then resume closed door talks with the Governor on a very similar bill that would include further concessions to the insurance industry.

Following is a CNA/NNOC statement on why it opposes the current AB 8:

AB 8 as amended still has serious policy and funding flaws.

• AB 8 has no minimum standard of health benefits for employees who are over 300% of poverty. It is based on the Knox-Keene requirement of benefit with the Managed Risk Medical Insurance Board determining the pool of benefits. To date, legislators do not know what those benefits are. It can be safely assumed that it will be high deductible, high co-pay with a low standard of covered benefits, the same experience of Massachusetts.
• AB 8 is probably under funded and if so the only place to cut is on covered benefits.
• AB 8 is still NOT affordable because:
  • Employees over 300% of poverty who are not exempt are subject to insurance premiums that are not cost contained.
  • It does nothing to limit the rising prescription drug costs and insurance premiums that far exceed wages.
  • The 7.5% employer tax is substantially less than what most employers currently pay (15%)

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