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Press Coverage

Bill aims to insure all kids

San Jose Mercury News
August 30, 2005
By Kate Folmar

SACRAMENTO--A bill that aims to cover California's remaining 800,000 or so uninsured children is poised to pass the Legislature in coming days, offering the hope of health care for many more families and potentially putting Gov. Arnold Schwarzenegger in the hot seat.

AB 772 by Assemblywoman Wilma Chan, D-Oakland, would create a California Healthy Kids Insurance Program, based in part on Santa Clara County's groundbreaking, 4-year-old children's health insurance program.

The measure would bring existing health insurance coverage for kids under one umbrella and raise the income threshold -- from 250 percent to 300 percent of the poverty level -- for families to qualify for state-provided health care for children. For counties such as Santa Clara -- which now insures 14,000 children through its Healthy Kids plan -- the bill could help low- and middle-income children who linger on the program's waiting list.

And the bill aims to streamline the application process for uninsured children to get covered. More than half of the children who lack insurance are already eligible for, but not enrolled in, existing health programs including Medi-Cal and Healthy Families.

Premiums paid for insurance would depend on family incomes. The most a family would pay would be $23 a child per month -- with a maximum of $69 per family, according to analysis of the bill by the legislative committee's staff.

"We are almost at the goal of covering all the children in California and we want to finish that goal," said Kristen Golden Testa, the California health director for the Children's Partnership, which is part of the 100% Campaign (other member groups include Children Now and the Children's Defense Fund) that is sponsoring the bill with the Pacific Institute for Community Organization's California Project.

Schwarzenegger has not taken a stance on the bill. But the Republican governor has been steadfast in talking about kids' health care as a critical issue.
"We have to make sure that every child in California is insured," he said in the September 2003 debate just before the recall election. "That is the most important thing."

To that end, Schwarzenegger increased funding by almost $150 million to add 125,000 more children to the Healthy Families program in the most recent budget. And he did not cut the Medi-Cal health program for the poor, which covers about 3.5 million kids. Nevertheless, it's unlikely he'll sign AB 772 this year.

The program will cost an estimated $300 million from the state general fund in the budget year starting July 1, 2006 -- even with federal contributions and premiums paid by families. The program would be phased in over three years with funding found in future state budgets.

Unless state tax receipts continue to rebound, paying for the program could require cuts elsewhere or higher taxes, which the governor considers anathema.

With fewer than two weeks left in the legislative session, it seems likely Schwarzenegger could be forced to choose between his belief in kids' health insurance and his efforts to rein in state spending, which are embodied in the Live Within Our Means act he's pushing on the Nov. 8 ballot.

Schwarzenegger's health secretary Kim Belshé has spoken with many advocates about the bill, said her spokeswoman, Nicole Kasabian Evans. Belshé's message has been: "The governor is absolutely committed to this issue, but now is not the time."

The health care bill is widely expected to reach Schwarzenegger's desk, because the leaders of the Senate and Assembly have identified it as a top priority.

Sen. George Runner, the ranking Republican on the Senate health committee, is among those who plan to vote against the measure because of high costs. He believes the bill offers "Cadillac," rather than basic, coverage, which could lead families to leave employer-offered plans in favor of state care.

"The issue is not whether we should insure kids," said Runner, of Lancaster, who thinks Democrats are pushing the bill to try to embarrass the governor. "The issue is whether we should have the state be paying for insurance for those kids."

Passing the bill is not an attempt to corner the governor, said Senate President Pro Tem Don Perata, D-Oakland. By Perata's reckoning, the governor has said he wanted to find areas of possible common ground -- and the Legislature plans to do its part.

"We are determined to send him a bill this year that is phase one of expanding health care" for kids, he said. "This seems in obvious conflict with his campaign to pass Live Within Our Means in November. But we are going to rely not only on his comments made as a campaigner, but also on his comments made as governor."

In case of a veto, however, there is an identical bill in the Senate ready for next year.