11/09/2007 GAAS:895:07 FOR IMMEDIATE RELEASE Print Version | Email / Share
Governor Schwarzenegger Calls Health Care Reform Integral to Solving Budget Deficit
Governor says Timing is Right for Comprehensive Reform
Governor Arnold Schwarzenegger today highlighted how fixing California’s broken health care system is key to keeping California’s economy strong and to solving California’s chronic budget problems. Expenditures on health care are approaching 20 percent of the state’s economic output, acting as a poison to our economy and forcing families, businesses and governments to absorb price increases more than twice the rate of inflation each year.
“We cannot fix the budget without fixing health care. Of course, we need structural reform of our state budget. And I am not suggesting that if we fix health care our budget problems disappear. But we also don’t need to get bogged down every year in a debate about cutting poor kids and their families from state health programs,” said Governor Schwarzenegger.
The Governor’s comprehensive health care reform plan generates $14 billion in new funding into California’s health care system, with almost none of it coming from the state’s General Fund.
In addition, his proposal includes $4 billion in new matching federal money available under existing rules.
“This money currently sits on the table in Washington, D.C. unused. My plan generates enough new revenue for health care that the federal government has already promised us the money,” said Governor Schwarzenegger.
California is able to access these new federal dollars through matching funds from:
- Fees on hospitals, which the California Hospital Association has endorsed.
- Fees on companies that do not provide health care coverage to their employees – with protections for small businesses, which has the support from some of the state’s largest business groups: including the Los Angeles Area Chamber of Commerce, Long Beach Chamber of Commerce, Latin Business Association, California Retailers Association, San Jose Silicon Valley Chamber of Commerce, San Francisco Chamber of Commerce, San Diego Regional Chamber of Commerce and National Association of Women Business Owners-Los Angeles Chapter.
California has one of the lowest reimbursement rates for doctors and hospitals that treat low-income patients. The Governor’s self-financed health care proposal also raises Medi-Cal rates, which not only increases access to care but also prevents providers from passing on the costs of treating the poor and uninsured onto Californians with health care coverage.
“Every time there is a budget problem, it’s the same story. The Capitol gets paralyzed with arguments about cutting people from health care and social services. But if we finally fix health care, we will reduce costs and provide coverage for all in a way our state can afford. This is the absolute right time for reform. We just have to keep pushing and negotiating to get the job done,” said Governor Schwarzenegger.
The Governor today discussed this issue at the Healthy Communities conference hosted by the Latino Coalition for a Healthy California. California has 6.7 million residents without health care coverage, the highest number of uninsured of any state in the nation. Latinos have the highest rate of uninsured of any group – with one in three without health insurance.
