Health plan vote is put off

Assembly chief plays a game of chicken with the governor.

By Aurelio Rojas - Bee Capitol Bureau
Published 12:00 am PDT Friday, August 31, 2007, The Sacramento Bee

Assembly Speaker Fabian Núñez, playing what amounted to a game of chicken, postponed a scheduled vote Thursday on Gov. Arnold Schwarzenegger's health care plan.

The Democratic speaker had announced last week that he would put the plan up for a vote to demonstrate how little support it has after the Republican governor said he would veto Núñez's bill, which would assess employers higher fees than Schwarzenegger's plan.

Núñez said he postponed the vote after Schwarzenegger began negotiating in earnest about how to expand access to health care for the 6.7 million Californians without insurance.

"Over the past couple of days, we were able to jimmy the door open that kept us from negotiating," Núñez said. "I think that once that door opened up a little bit, the discussions with the administration began to improve."

Schwarzenegger spokesman Aaron McLear said he would let the "speaker speak for himself" on why the vote was postponed, but added it was inaccurate to say "we just started talking about health care."

"We've been working for a year on this," McLear said. "The governor has talked to the speaker and (Senate President Pro Tem) Don Perata and everyone else for a long time."

Núñez said he and the governor are building on "commonalities to get us to a point where we can compromise on our differences."

Schwarzenegger has proposed charging hospitals 4 percent of revenue and doctors 2 percent to help pay for his plan.

On Thursday, the governor met with the board of the California Hospital Association to urge its support. The California Medical Association, which represents doctors, has already rejected the governor's proposed fees.

The governor also would require employers to spend at least 4 percent of their payroll on health care and would require all Californians to obtain minimum coverage.

"You're not going to see Republicans for fees," said Núñez, adding the planned Assembly vote was intended to show the governor that even members of his own party oppose his plan.

The speaker's Assembly Bill 8, which he put together with Perata, would require employers to spend at least 7.5 percent of their payroll on health care.

Unlike the Republican governor's plan, it would not impose fees on hospitals or doctors nor would it require everyone to obtain health insurance.

Schwarzenegger said last week that he would veto AB 8 because it would place the economic burden on employers. The governor believes costs should be shared by employers, employees, insurers and government.

The governor's plan needs a two-thirds vote of the Legislature to pass, which would require some Republicans to support it. The Democratic plan could pass on a simple majority without Republican votes.

Perata, who has declared he's not optimistic that anything substantial will be accomplished on health care before the Legislature adjourns Sept. 14, said Thursday, "We've been fooling around with this thing for 10 months now."

"The Governor's Office is engaging now," Perata said. "I would like to see him sign something. If he wants to go later and get a funding mechanism on the ballot, that's fine, too."

The California Retailers Association announced this week that it is joining the California Restaurant Association and the California Small Business Association in supporting a proposed ballot initiative that would create a 1-cent sales tax to fund health care reform.

But Perata said he was "highly skeptical" that ballot measure would pass unless supported by the governor as well as Democratic and Republican legislators.


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