Republicans Propose Alternative to Schwarzenegger Health Plan

By Kathy Robertson
Silicon Valley / San Jose Business News

Senate Republicans released a health care reform proposal Tuesday that seeks to make health care coverage more accessible and affordable for all Californians without raising fees or taxes.
Dubbed "Cal CARE," the plan offers tax incentives for individuals and businesses who buy health insurance instead of requiring individuals to buy it and businesses to provide it or pay into a state pool that does. Both are cornerstones of the plan proposed by Gov. Arnold Schwarzenegger and Senate Democrats.

The Republican plan reallocates existing funds to pay for new health initiatives and calls on the federal government to pick up the tab for care provided to illegal immigrants. In order to improve access to care, the plan would increase provider rates paid by Medi-Cal, the state health care program for the poor, to equal those paid by Medicare, the government program for seniors, over a period of eight years.

The plan would use a significant portion of the $2 billion currently allocated annually to hospitals that care for a disproportionate number of poor patients to build more primary-care clinics to care for this population before it gets sick.

It would also allow nurse practitioners and other qualified providers to run primary-care clinics in underserved rural and urban areas.

"The Republican plan recognizes the fact that taxpayers cannot afford insurance for everyone, but we can certainly provide access to everyone in need," Republican State Sen. Sam Aanestad from Grass Valley said in a prepared statement.

The plan puts particular emphasis on expanding health care coverage for children.

Backers will ask the Legislature to place a measure on the next statewide elections ballot to redirect current tobacco tax funds to pay for children's health care initiatives.

From: Silicon Valley / San Jose Business News (www.bizjournals.com)