Healthcare Coverage for 1.4 Million Uninsured

Summary: Proposition 72 would require businesses with 50 or more employees to provide health insurance or pay a fee into a state-run plan for those workers. This is a referendum on a law, Senate Bill 2, approved in 2003.

If Proposition 72 is approved, employers with 200 or more workers would have to provide health coverage for employees and their dependents starting in January 2006. Companies with 50 to 199 workers would have until January 2007 and would have to provide coverage for only their workers.

Companies with 20 to 49 workers would not have to comply unless California creates a tax credit worth 20% of the amount they would have to pay to the state if they did not provide healthcare. Employers with 19 or fewer workers would be exempt.

Supporters: The California Medical Assn., California Alliance of Retired Americans, American Lung Assn. of California, and Consumers Union are some of the healthcare and consumer advocacy groups favoring the measure. They are asking for a “yes” vote.

Opponents: This referendum was placed on the ballot by the California Chamber of Commerce, the California Restaurant Assn., the California Retailers Assn. and other business groups seeking to repeal the measure with a “no” vote. Gov. Arnold Schwarzenegger also is urging a “no” vote.

Impact: The proposition would provide healthcare coverage to 1.4 million of California’s 5.3 million people without insurance. Opponents say the new mandates would drive some businesses into bankruptcy and compel others to leave California. Supporters say that those fears are exaggerated and that the mandate would ease the financial pressures on emergency rooms and public health programs.

Websites:

The Save Your Health Care coalition: www.yesonprop72.com.

The Stop The Health Care Tax coalition: www.stopthehealthtax.org.