Proposition Summary

BASIC HEALTH CARE COVERAGE. INITIATIVE STATUTE • Requires employers to provide basic health care coverage for employees working specified hours, and their dependents, as permitted by federal law. • Provides phase-in period. • 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 and panels for Medical Policy, Cost Containment, and Technology. • Provides employer tax credits. • Makes appropriations for commission support. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: • Potential state general tax revenue losses of tens to hundreds of millions of dollars annually, in the short term. The longer-term impact on general tax revenues is unknown. • State revenue losses of hundreds of millions of dollars annually from expanded use of the small business health care tax credit. • State savings in the range of $250 million annually to the Medi-Cal Program. • County savings of potentially more than $100 million annually. • Net fiscal impact of the measure is unknown.

Proposition Number




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Popular Vote Results

Y: 3255302; A: 30.81; N: 7310637; B: 69.19

Election Type

General Election

Proposition Type

Initiative statute

For Author

Richard F. Corlin, M.D., President, California Medical Association

Against Author

Mary E. Foley, Rn, President, California Nurses Association; Martyn B. Hopper, State Director, National Federation of Independent Business/California; Lewis K. Uhler, President, The National Tax-Limitation Committee

Rebuttal Author

Harry M. Snyder, Director, West Coast Regional Office Consumers Union, not-for-profit publisher of Consumer Reports Magazine; Charles Carbonaro, Chair, American Association of Retired Persons, California State Legislative Committee; John F. Henning, Executive Secretary-Treasurer, California Labor Federation, AFL-CIO

Rebuttal Against Author

Mary Ann Valentine, Working Mother