Proposition Summary

Health Care Coverage Requirements. Referendum. A “Yes” vote approves, and a “No” vote rejects legislation that: • Provides for individual and dependent health care coverage for employees, as specified, working for large and medium employers; • Requires that employers pay at least 80% of coverage cost; maximum 20% employee contribution; • Requires employers to pay for health coverage or pay fee to medical insurance board that purchases primarily private health coverage; • Applies to employers with 200 or more employees beginning 1/1/06; • Applies to employers with 50 to 199 employees beginning 1/1/07. Applies to employers with 20 to 49 employees if tax credit enacted. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: • Expenditures fully offset by fee revenues paid mainly by employers, which could range from tens of millions to hundreds of millions of dollars annually, to fund a new state program primarily to purchase private health insurance coverage. • Reduction in county health program costs potentially in the low hundreds of millions of dollars annually. • Uncertain net fiscal impact on state-supported health programs. • Increased costs potentially in the low hundreds of millions of dollars annually for state and local public agencies to provide additional health coverage for their employees. • Net reduction in state tax revenues potentially in the low hundreds of millions of dollars. • In summary, unknown net savings or costs to state and local government.

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Document Type




Popular Vote Results

Y:5709500; A:49.2; N:5889936; B:50.8; Abst:990247; C:7.87

Election Type

General Election

Proposition Type


For Author

RICHARD HOLOBER, Executive Director, Consumer Federation of California; DEBORAH BURGER, RN, President, California Nurses Association; RICHARD F. CORLIN, M.D., Past President, California Medical Association & American Medical Association

Against Author

ALLAN ZAREMBERG, President, California Chamber of Commerce; SANDRA CARSTEN, President, Association of California School Administrators; JAMES G. KNIGHT, M.D., 2003 President, San Diego Medical Society

Rebuttal Author

THOMAS LAGRELIUS, M.D., President, California Chapter, Association of American Physicians and Surgeons; GLORIA RIOS, Director, California Association of School Business Officials; JON COUPAL, President, Howard Jarvis Taxpayers Association --

Rebuttal Against Author

PAUL KIVELA, M.D., President, California Chapter, American College of Emergency Physicians; BARBARA E. KERR, President, California Teachers Association; TOM PORTER, California State Director, AARP --