The Wall Street Journal-20080129-Politics - Economics- Health-Care Bill Fails to Pass- Year-Long Debate In California Stalls In Senate Panel

Return to: The_Wall_Street_Journal-20080129

Politics & Economics: Health-Care Bill Fails to Pass; Year-Long Debate In California Stalls In Senate Panel

Full Text (438  words)

In a move that appears to doom an intense year-long health-care reorganization effort by California Gov. Arnold Schwarzenegger and Assembly Speaker Fabian Nunez, a far-reaching $14.7 billion plan to overhaul California's health-care system failed to pass out of a state Senate committee.

The bill, negotiated over many months by the two leaders, was a top priority for Mr. Schwarzenegger's administration last year. It cleared the state Assembly in December and was expected to go to California voters in a ballot initiative this November. But the Senate Health Committee rejected the plan yesterday in a 7-1 vote, leaving proponents no time to regroup in time to put something before voters this year.

The plan would have covered about 70% of the state's 5.1 million uninsured residents through a combination of subsidies and mandates. All state residents would have been required to buy health insurance. Insurers would be forced to accept nearly all applicants, including those with medical problems. Employers would be required to contribute toward their workers' health benefits, or pay into a state fund.

Mr. Schwarzenegger in January 2007 began preaching the principle of "shared responsibility" -- asking all stakeholders in the health-care system to compromise so that a deal could be reached. Republican lawmakers from the start opposed the plan, mainly because of the burden on employers, but it appeared until recently to have enough Democratic votes to pass through the Legislature. Support began to erode in the senate as the outlines of the state's $14 billion budget deficit came into focus late last year.

Last week, the Legislature's nonpartisan fiscal analyst raised questions about funding for the package, further undermining its prospects. Lawmakers who had been leaning in favor of the negotiated bill began backing away in the face of uncertainty about how the state could enact an ambitious new program at a time of fiscal crisis when the governor has proposed cutting funds for established health-care programs.

Mr. Nunez, the Assembly speaker, expressed resignation before the bill was defeated in the Senate Health Committee hearing. The bill was "an historic effort" that reflected the voices of Californians throughout the state, he said. He challenged the members of the Senate to come up with a better plan in the future. However, the defeat doesn't leave enough time to put a different measure on the November ballot.

In a statement, Mr. Schwarzenegger said he would continue to strive for a solution. "I am someone who does not give up," he said, "especially when there is a problem as big and as serious as health care that needs to be fixed."

---

Associated Press contributed to this article.