SACRAMENTO—Senate President pro Tem Don Perata (D-Oakland) and Speaker Fabian Núñez (D-Los Angeles) today unveiled a new Democratic health care plan.

“I think this is a bill that all Californians can be proud of because it provides universal health care; it has the right affordability provisions in it; and it once again sets a gold standard for California,” Speaker Núñez said.

“This proposal shows significant movement while maintaining the values of AB 8 in terms of affordability and fiscal responsibility,” Senator Perata said.

The new Democratic bill includes the core principles of Assembly Bill 8, the Democratic plan vetoed by the Governor last year, while meeting the Governor halfway on other key elements of health care reform. Specifically, the new health care plan:

• Establishes an individual mandate for most Californians but exempts people who cannot afford to purchase insurance. Affordability is met when the total cost of health insurance is 6.5% or less of a family income.
• Covers all children and parents up to 300% of the federal poverty line.
• Covers all single adults through Medi-Cal up to 250% of the federal poverty line.
• Provides individuals with incomes 250-450% of the federal poverty line not eligible for public programs with an advanceable, refundable tax subsidy to help purchase coverage.
• Ensures that nobody earning between 0-150% of the federal poverty line will be required to pay premiums, co-payments, or deductibles.
• Requires the Managed Risk Medical Insurance Board (MRMIB) to establish the minimum benefits package suitable for coverage in California.
• Contains significant cost-containment measures, including allowing the state to pursue bulk purchasing of pharmaceuticals and requiring transparency from hospitals.

In addition to cost-containment measures, the bill is financed through a combination of fees and taxes, including:

• A $2 per pack increase in the tobacco tax.
• An employer fee assessed on a sliding scale. Employers with payrolls up to $100,000 would be expected to contribute at least 2% of payroll. Employers with payrolls from $100,000 to $250,000 would be expected to contribute at least 4% of payroll. Employers with payrolls above $250,000 would be expected to contribute at least 6.5% of payroll. In addition, employers would be expected to either offer insurance to part-time employees or contribute to the public purchasing pool for those employees.
• A hospital fee assessed at 4% of revenue.

Here are links to audio of Speaker Fabian Núñez:

• Speaker Núñez says the new Democratic health reform plan is a breakthrough.
• Speaker Núñez says the new Democratic health care reform plan draws on the best ideas that are realistic.
• Speaker Núñez says the new Democratic plan is a good compromise and could be a model for the rest of the country to follow.
• Speaker Núñez says, unlike the Governor’s financing ideas, the financing plan in the Democratic reform package is realistic and a good compromise.
• Speaker Núñez explains the schedule for Assembly hearings and votes on the new Democratic health care reform bill.

At today’s health care press conference, Speaker Fabian Núñez fielded questions on California’s budget situation. Audio is below:

• Speaker Fabian Núñez says the next budget year will be difficult.
• Speaker Fabian Núñez says any California budget must balance the state’s financial situation with compassion.
• Speaker Fabian Núñez says he’s worried budget cuts would hurt the people who can least afford it and the looming budget problem will make it hard for the Governor to make next year “the year of education.”