SACRAMENTO – Assemblymember Mendoza ­­­­hailed passage by the Assembly of historic, comprehensive health-care reform legislation authored by Speaker Fabian Núñez (D-Los Angeles).  Earlier this week the Assembly approved Assembly Bill 1x1 (AB1x1), a comprehensive and fiscally responsible measure that will provide health coverage for most of the state’s 5.1 million uninsured, including 8000,000 children and help working families afford insurance.

“This legislation will forever change the way health care is delivered in California,” Assemblymember Mendoza said.  “California leads the nation with cutting-edge responses to critical issues.  I applaud both Speaker Núñez and Governor Schwarzenegger for reaching today’s compromise.” 

Details of the bill include:

• Coverage for all children and parents up to 300% of the federal poverty line and for single adults up to 250% of the federal poverty line;
• An individual mandate for most Californians to have coverage, but exempts people who cannot afford to purchase insurance;
• An advance, refundable tax subsidy for those with incomes 250-450% of the federal poverty line to help purchase insurance;
• A guarantee that no one earning between 0-150% of the federal poverty line will pay premiums, co-payments, or deductibles;
• The establishment of a minimum benefits package suitable for coverage in California by the Managed Risk Medical Insurance Board (MRMIB); and
• Significant cost-containment measures, including allowing the state to pursue bulk purchasing of pharmaceuticals and requiring transparency from hospitals.

The bill now goes to the State Senate for action.

If passed by the Senate, voters will be asked to approve the bill’s financing through a combination of fees and taxes, including:

• An increase in the cigarette tax.
• An employer fee assessed on a sliding scale so as to spread the cost of providing coverage to those that can afford it.  Employers would either offer insurance to part-time employees or contribute to the public purchasing pool.
• A hospital fee assessed at 4% of revenue.

For more information about the bill, contact the office of Assemblymember Mendoza at (916) 616-7091 or Assemblymember Mendoza’s Web site at http://www.assembly.ca.gov/mendoza.