Navigation Links
Governor's Health Plan Hides the True Cost of a Mandatory Purchase Requirement, Testimony Shows
Date:10/31/2007

SACRAMENTO, Calif., Oct. 31 /PRNewswire-USNewswire/ -- California Health and Human Services Agency Secretary Kim Belshe indicated in legislative committee today that the financial estimate of the Governor's plan to require all Californians to buy private insurance policies does not consider the impact of double digit insurance company premium increases. The proposal does not add up to affordability, said the Foundation for Taxpayer and Consumer Rights.

In response to questions from Assemblyman Dave Jones (D-Sacramento), Belshe argued that costs would somehow be contained, yet the $14 billion estimate of the plan's cost appears to be based on annual medical inflation--doctor and hospital rates--which range from 4% to 6%. This does not take into account that insurance premiums have increased two to five times faster than medical inflation. Dramatic insurer premium increases of the last several years are due to huge profit increases, vast cash reserves and administrative waste, said FTCR.

"Californians deserve an honest debate of how much health care will cost under the governor's plan to require them to buy private insurance policies," said Jerry Flanagan of the Foundation for Taxpayer and Consumer Rights (FTCR). "The bottom line is that governor's plan does not add up. Health care will never be affordable for patients, the system, or the state's taxpayers when insurers are allowed to charge whatever they choose."

Massachusetts passed a similar law requiring residents to buy private health insurance last year. That program, which goes into effect in January, has already experienced cost increases far beyond what was promised by policymakers when the bill was passed.

In response, Massachusetts Senate President Therese Murray (D-Plymouth) has proposed a plan to require health insurance to justify rate increases in excess of 7%. She also said that the state's insurers should spend down their $2 billion in excess reserves to keep premiums affordable.

In comparison, just three top California health insurers -- Blue Cross, Blue Shield, and Kaiser -- have $14.4 billion in reserves in excess of state-required amounts.

Jones (D-Sacramento) authored legislation this year that would require health insurances companies to justify rate increases as auto insurers have been required to do since 1988 under Proposition 103. Jone's bill, AB 1554, passed the Assembly but failed to pass the state Senate Health Committee. The bill was granted reconsideration and is awaiting a new hearing. Gov. Schwarzenegger has refused to include such a requirement in his health care bill.

"An individual mandate, especially one without containment of health insurance premiums and overall rates, is a recipe for cost explosions that will sink affordability both for the state and for individuals who are saddled with a mandate," said Flanagan.

FTCR said Schwarzenegger's aim of expanding health coverage is laudable, but the plan is deeply flawed: It does not define what a "baseline" health plan must cover, or limit the amount of deductibles, copays and other out of pocket costs to the people forced to buy insurance.

FTCR is California's leading public interest watchdog. For more information, visit us on the web at http://www.ConsumerWatchdog.org.


'/>"/>
SOURCE Foundation for Taxpayer and Consumer Rights
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. The National Governors Association Releases Guidelines For Outbreak Of Bird Flu
2. Poor health care in Russia maybe causing Decline in its Population
3. Startling Expose – Physicians Often Have No Regular Source Of Health Car
4. Debate Rages over firing of HIV infected health care workers
5. Want a Healthy brew? Have some Tea!
6. Patient’s perception of health status helps in better recover
7. Antioxidants protect health tissue in people undergoing radiation therapy.
8. Sexual abuse affect health for a lifetime
9. Smoking a greater risk than HIV? Yes say health experts!!!!
10. Healthcare sector is now a multi billion-dollar industry in India
11. Exclusive breast-feeding advised for six months in infants recommends World Health Organization
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/29/2016)... ... ... Spine Team Texas, a comprehensive spine physician group specializing in the treatment ... been invited to be a featured speaker at the Texas Society of the American ... 2016. , Dr. R. Scott McPherson, a physical medicine and rehabilitation specialist, will ...
(Date:4/29/2016)... ... ... Mobility Designed is redefining mobility with their patent pending crutch design. ... distributes body weight from the elbow to the forearm. In consumer tests, users ... other crutches. , Co-founders Max and Liliana Younger were inspired to design the crutches ...
(Date:4/29/2016)... ... April 29, 2016 , ... The Gluten-Free ... is pleased to announce the launch of the GFCP Scoop in ... more. The purpose of the GFCP Scoop site is to keep ...
(Date:4/29/2016)... ... ... Dr. Robert Mondavi, one of the dentists in Torrance , is now ... as more patients are discovering the many different ways they can change and improve ... to them and which ones might work for their smiles. , “One of ...
(Date:4/29/2016)... ... April 29, 2016 , ... Reltok Nasal Products proudly announces ... the head and neck/ear, nose and throat specialty, has added the KOTLER NASAL AIRWAY™ ... NASAL AIRWAY™ is a newly patented safety device secured by nasal surgeons onto ...
Breaking Medicine News(10 mins):
(Date:4/28/2016)... 28, 2016  ValGenesis, Inc., the market ... (VLMS) today announced that a prominent world ... of chronic kidney failure has selected ValGenesis ... corporate validation process. The global medical device ... to manage their validation processes electronically. Upon ...
(Date:4/27/2016)... -- Hologic, Inc. (Nasdaq: HOLX ) announced ... second quarter ended March 26, 2016.  GAAP diluted ... and non-GAAP diluted EPS of $0.47 increased 14.6%.  ... reported basis, and 6.3% on a constant currency ... quarter, highlighted by 14.6% growth in non-GAAP EPS," ...
(Date:4/27/2016)... 2016   , ... Recurring Consumable Sales  Clinical sales grow 16% ... (Euronext: MKEA, OTCQX: MKEAY) inventor of Cellvizio®, the multidisciplinary ... the first quarter ended March 31, 2016 and provided ... its commercial strategy. First Quarter 2016 Revenue ...
Breaking Medicine Technology: