SCHWARZENEGGER'S PIECEMEAL PLAN

SENATOR KUEHL'S COMPREHENSIVE PLAN (SB 840)

Health insurance is REQUIRED. Everyone has to buy it from private firms.

Private health insurance firms ELIMINATED except for experimental treatments for extreme wealthy

Health insurance is NOT universal because not everyone will comply. Auto insurance is mandated but 25% of drivers in California are uninsured.

Everyone is AUTOMATICALLY covered by a single insurance plan.

Partial coverage offered--no dental, eye care, mental healthcare, home. Strong financial incentives created to offer "junk insurance"

Coverage is comprehensive, including medical, dental, eye care, mental health, home health, dialysis, therapy, substance abuse, elderly daycare, hospice care and more.

Insurance companies decide how much it will cost every year. Rates subject to whatever insurance companies can get away with that year. Rates unpredictable.

State board would set global health budget. Rates predictable and reliable

Insurance companies decide how much to charge above REQUIRED MINIMUMS for deductibles ($5,000) and co-pays ($7,500).

No deductibles, co-pays, or exclusions for pre-existing conditions.

Doctors and hospitals pay a percentage of their revenue to subsidize the uninsured.

Doctors, hospitals and other healthcare providers are fairly compensated for all of their services and are not required to pay into the system.

Insurance companies must cover everyone, but will 'red-line' districts and determine their own rates based on gender, age, and region.

Costs to individuals and families DECREASE over current premiums.

Businesses with more than 10 employees must pay only 4% of payroll for health insurance, but those who currently provide coverage pay more than 8%.

Costs to employers DECREASE over current premiums.

Businesses with less than 10 employees (80% of businesses in California) don't have to pay anything-coverage is up to individuals.

People with incomes up to 250% of the poverty level ($50,000 for a family of four) get subsidies but will spend up to 6% of income on mandated insurance.

The Federal government must increase subsidies for medical care. No guarantee this will happen.

Costs to California DECREASE.

Money now paid to hospitals to care for the indigent will now go to insurance companies to cover the indigent, so at least 15% will be lost to overhead.

hospitals and other healthcare providers are fairly compensated for all of their services and are not required to pay into the system.

Insurance companies' medical loss ratio(money spent on actual healthcare instead of profits and stock bonuses) is capped at 85%, but the premiums they may charge are unlimited.

ALL money collected for healthcare will be spent on healthcare.

Insurance companies DICTATE which doctors and hospitals patients may use.

Patients may CHOOSE any doctor, hospital, or healthcare provider they wish.

No controls on the cost of care. No controls on the cost of insurance premiums.

Global state healthcare budget to control ALL healthcare costs

No requirement for electronic record-keeping.

Secure electronic health records available to all licensed providers.

No budget for seismic retrofitting of hospitals.

Budget for seismic retrofitting of hospitals.

No incentive or regulations to stop fraud

An Inspector General to prevent fraud.

No negotiated rates for drugs and durable medical equipment. Californians will continue to pay 30-50% more than the Europeans.

Negotiated rates for drugs & durable medical equipment saving billions.