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Press Coverage

Child health insurance bills vetoed
Legislation would have provided affordable plans for all Californians from birth to age 21

Oakland Tribune
October 9, 2005
By Josh Richman

Gov. Arnold Schwarzenegger late Friday night vetoed a pair of bills that sought to extend health care insurance to all California children.

The bills, co-authored by Assembly Health Committee Chairwoman Wilma Chan, D-Oakland, would have expanded on the state's MediCal and Healthy Families programs to ensure every Californian has access to affordable health insurance from birth to age 21. About 800,000 California children nowlack health insurance. A state Senate Appropriations Committee analysis had found Chan's plan would cost about $300 million in 2006-07 and $500 million in 2007-08.

"I believe that children should be insured but this bill fails to address a critical question: How to pay for it?" Schwarzenegger wrote in his veto message. "This bill would cost the state almost a half billion dollars a year without providing a funding source at a time when California has a $7.5 billion structural deficit."

He also faulted the bills for relying solely on state-program expansion as a means of ensuring coverage for children. "The measure includes strategies that need to be further analyzed for their relative effect on enrollment, cost effectiveness, and program integrity, and evaluated to ensure that they won't divert resources to administrative processes and investments for already enrolled children," he wrote.

Chan said Saturday "The big losers are the kids and their families." Chan in the past has said there would be federal matching funds for every state dollar spent. And one of the two bills would have created a California Healthy Kids Fund to collect private contributions as well as public money to launch the program; many in the business and philanthropic communities already have signaled they'll ante up, Chan said.

Chan said Saturday she and other lawmakers were ready to discuss with Schwarzenegger how to fund the program in later years.

"Although we've had some dialogue with (state Health and Human Services Secretary) Kim Belshe and others in his health department, we never received any substantive criticism of the bill," she said. "The bill's been in print for eight months, they've had plenty of time to give us feedback and ask us to make changes."

And if Schwarzenegger doesn't believe in mandatory employer-paid health care--signaled by his opposition to Proposition 72 of 2004--and doesn't want to accomplish better coverage by expanding existing government programs, "I'm not sure, if we eliminate those two options, how we're going to get there," Chan said.

The bill's advocates had noted children with adequate health care miss less school, furthering the state's education goals. And perhaps most importantly insuring children is cheaper than letting families use emergency rooms as primary care sources.

Parents, children, health care advocates and Chan will rally outside Oakland's Csar Chvez Elementary School at 10 a.m. Monday to decry the veto.