Schwarzenegger insurance plan dies; Bush unveils one

Nation's Restaurant News,  Feb 11, 2008  

• E-mail
• Print
• Link

SACRAMENTO, CALIF. -- In a closely watched test of political support for health insurance mandates, Gov. Arnold Schwarzenegger has failed to obtain the approval of a California Senate committee for his $14 billion plan to provide coverage to all Californians with the aid of new payroll taxes on restaurateurs and other employers.

[ILLUSTRATION OMITTED]

The proposed November ballot measure, previously approved by the state Assembly, was defeated on the same day President Bush proposed extending health insurance by allowing the uninsured to buy coverage with income-tax-exempt dollars. Under Bush's plan, companies that provide coverage, and employees who share in the cost, would use pre-tax dollars to buy insurance.

Bush also called on Congress to allow the formation of association health plans, or AHPs, a strategy supported by the National Restaurant Association and other industry groups. AHPs pool the buying power of small businesses to buy health insurance at prices that reflect economies of scale. The nation's regulatory setup currently prohibits AHPs that bring together businesses from multiple states.

COPYRIGHT 2008 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2008 Gale, Cengage Learning