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Nunez Health Reform Bill Establishes Mandatory Purchase Without Linking to Subsidies for Middle Class and Poor
Date:11/13/2007

ion drugs, emergency care, hospital and physician coverage, vision and dental.

-- Universality -- no defined benefit. By exempting from the mandate those who would have to spend more than 6.5% of family income, you all but assure that regulators will define a policy that fits the 6.5% rule, but provides only an illusion of coverage. This has been the experience in Massachusetts, the only state to adopt a mandatory purchase requirement.

-- Universality -- unaffordable mandate. If instead bureaucrats do require individuals to buy comprehensive coverage, that coverage, which now costs $12,000 a year for a family of four, exceeds 6.5% of an average middle-class family's income ($4,030 for a family of four making $62,000). Those families would be exempted from the mandate but left uninsured.

-- Rigidity of Choice -- locking patients in low-benefit coverage. Five different plans may be an adequate overall number of choices, but consumers are allowed to raise their coverage by only one level, once a year. Even if a patient won the lottery and could afford comprehensive coverage, under your bill they would have to wait up to five years to get it. This stranglehold on choice appears to be aimed at propping up low-benefit plans that you believe people will not want to buy if they could afford better.

To believe that the legislature could restructure the entire California health care system in a manner of weeks without unintended consequences is a fool's errand. The details of the bills are just becoming available and there are too many unanswered questions to proceed quickly. The legislature may be able to fashion a proposal on universal health care for kids. That would be a major victory for California and a step forward on health care reform. But to do more now risks losing more than we will gain.

We urge you to be cautious and careful and "do no harm" by approving a health care bill that is less affordable, universal, and provides less ch
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SOURCE Foundation for Taxpayer and Consumer Rights
Copyright©2007 PR Newswire.
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