Fact check on the Governor:
“First and foremost, AB 8 does not cover everyone. Any reform that leaves millions without health insurance and fails to address our dangerously overcrowded emergency rooms simply maintains a broken system. I have said from the beginning of this debate that coverage for all Californians is critical to reducing health care costs for everyone.
The Governor’s plan does not cover everyone.
* By his own modeling by MIT Professor Gruber, his plan leaves out over 800,000 of the 4.9 million uninsured at any given time.
* In addition, while his plan does extend public program coverage to some, it simply requires over a million people to go get coverage in the individual market, without any assistance from employers or public programs. Hundreds of thousands of people will likely not abide by the mandate–or be in a high-deductible plan that really doesn’t “cover” them.
If you exclude those people who are forced to buy an unaffordable product without any assistance from group coverage, AB8 would actually provide more coverage than the Governor’s plan.
“AB 8 does not protect consumers because insurers would still be allowed to deny coverage, leaving Californians vulnerable to loss or denial of coverage when they need it most.
AB8 limits the insurers ability to deny coverage, and provides subsidized coverage to those who are denied, so they are not left without coverage.
“I also believe that AB 8 is financially unsustainable. I have always said that I would not sign a health care bill that puts the vast majority of the financial burden for reform on any one segment of our economy. AB 8 unfortunately does that by requiring businesses to pay at least 7.5 percent of their payroll into a state fund or on health care services for employees.
AB8 has six different funding streams, with not a single one forming a majority. Based off the Gruber modeling, the employer contributions would be less than half of the total funding.
AB8 is a majority vote bill that can get to the Governor’s desk, and so does not have some proposed funding sources, including the hospital tax. However, it does include:
* a minimum employer contribution;
* required worker contributions;
* reinvested state savings;
* new federal Medicaid matching dollars,
* new use of Section 125 federal and state tax breaks, and
* an assessment on insurers.