SACRAMENTO—Assembly Speaker Fabian Núñez (D-Los Angeles) today issued the following statement after the preliminary release of costs associated with Assembly Bill 8, his Fair Share Health Care plan:

“Californians are increasingly aware that we can’t afford to see health care costs for employers, families and individuals keep spiraling the way they have been.

Last week we had a major breakthrough on health care reform when several of the state’s key employers announced they were joining the effort to reduce the number of uninsured in California and reduce health care costs for everyone.

Today, an independent cost analysis prepared by Dr. Jonathan Gruber of MIT underscores just how cost effective the Assembly and Senate health care proposals are for business, consumers, and taxpayers.

These numbers show health care reform is achievable and affordable.

My bill, AB 8, covers almost 70% of those currently uninsured, extending coverage to 2.74 million adults and 620,000 children. Dr. Gruber’s fiscal model shows that AB 8 will generate sufficient funding through employee premiums, employer contributions and state and federal funds to pay for the cost of the program and maintain a responsible reserve.

In many cases, businesses will see that the minimum health care spending standard in the legislation is lower than what they are paying now. Having all companies play by the same rules stops an unfair form of competition. Hidden taxes will be removed from family expenses and pre-tax premium savings will benefit those on both sides of the payroll ledger.

Flaws in the current health care system make it difficult to implement cost containment measures. Lowering pass-through costs caused by the high number of uninsured, reforming insurance underwriting practices, harnessing new technologies and making sure consumers and employers can really see what services they’re paying for – all components of AB 8 – will work to make health care more affordable.

AB 8 and SB 48 are both moving through the legislative process. We look forward to continuing to receive feedback on these proposals from the governor, or to seeing actual legislation from the administration with the same level of detail we’ve provided for our bills.

I believe we have a window this year to build on our bipartisan successes and fix our broken health care system. The framework for a deal is there. The employers coming on board and the soundness of these numbers show the momentum is there, too.”

Health Care Plan Cost Analysis (PDF)

Audio of Speaker Núñez Talking About Health Care Plan Cost Analysis:

http://democrats.assembly.ca.gov/Newsline/Audio/20070515HealthCareNunezRaw.mp3

Video of Speaker Núñez Talking About Health Care Plan Cost Analysis:

http://www.youtube.com/watch?v=VIhGBO5o7xs