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The Good, the Bad, and the Ugly of the Nunez/Perata Health Plan
Date:11/6/2007

verage policy, currently

over $12,000 a year, would either be forced into cheap "junk

insurance" that protects only insurance companies, or remain

uninsured.

The Ugly

-- Those who fail to pay for coverage will have their wages garnished.

-- Nothing in the plan limits what insurers can charge in monthly

premiums.

-- The maximum 6.5% of payroll costs that employers must pay for

employee health care is lower than the current workforce average,

meaning that more of the cost will be borne by workers.

-- There is no mention of "community rating" in the plan. Community

rating, in effect in some form in 17 states, can prohibit the use

of health status, age, gender and industry to calculate insurance

premiums.

-- As in Massachusetts, the plan is not universal. Large numbers of

middle-class Californians are likely to be priced out of coverage.

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


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

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