Attorney General No.


Secretary of State No.



BASIC HEALTH CARE COVERAGE. INITIATIVE STATUTE. Requires employers to provide basic health care coverage for employees and their dependents. Provides phase-in period, as specified. Employee contributions shall not exceed 2% of wages; eliminates duplicate coverage; specifies type of health care benefits, including prescription services. Subjects health carriers to enforcement powers of Insurance Commissioner or Commissioner of Corporations and prohibits exclusion based upon prior disease, disorder, or condition. Establishes Health Care Coverage Commission, Medical Policy Panel, Cost Containment Panel, and Technology Panel, and membership and duties. Provides employer tax credits; specifies amendments; severability clause. Makes appropriations for commission support. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Measure would, in the short run, result in state general tax revenue losses of potentially hundreds of millions of dollars annually. Longer-term impact on general tax revenues is unknown. It would also result in state revenue losses of several hundred million dollars annually from expanded use of the small business tax credit. There are potentially state savings in the range of tens of millions of dollars to in excess of $200 million annually to the Medi-Cal Program, with unknown savings to other public sector health programs.


Carol A. Lee Associate Director Government Affairs California Medical Association, 1201. K Street, Suite 1050, Sacramento, Ca 95814-3906 (415) 541-0900



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