PLEASE READ THIS and LET THE CALIFORNIA GOV'T KNOW WE WANT IT!!!

(Easy directions at the bottom, with phone contact info.)


Comprehensive healthcare reform bill reaches the Governor's desk - California SB 840

Here's the story:

CALIFORNIA STATE LEGISLATURE APPROVES MAJOR STATEWIDE HEALTHCARE INSURANCE REFORM

On August 31, 2006, the California State Senate approved and sent to the Governor SB 840, authored by State Senator Sheila Kuehl (D-23) by a vote of 24-12 (final vote of 25-15 expected). SB 840 will insure that every Californian has comprehensive health coverage; guarantee the right of patients to choose their own doctors; allow California to use its purchasing power to negotiate bulk rates for prescription medication; and control healthcare costs. Governor Schwarzenegger has until October 1 to sign the bill into law.

This is the first time in the history of California that both houses of the Legislature have passed a comprehensive healthcare reform of this magnitude. SB 840 replaces the current maze of public and private health plans with a single, efficient claims and reimbursement system, bringing down the administrative costs of healthcare in California from about 30% to less than 5%. This will free up billions of dollars for patient care, thus making it possible to provide, as SB 840 does, each resident of the state with medical, vision, dental, hospitalization and prescription drug benefits. The savings realized through negotiating bulk rates on prescription drugs and medical equipment are projected to add another 2 billion dollars to California's available funds for healthcare.

The plan is funded by drawing in current public spending and replacing all premiums, co-pays and deductibles paid to insurance companies with premiums paid to the system. As amended, the bill creates a blue ribbon panel of health, finance and technical experts to lay out the mechanics for an affordable premium structure using information gathered in available funding studies. The bill is based on a model, generated by the Lewin Group, an independent medical cost/benefit analysis firm, which demonstrates that if individuals and corporations are assessed a single yearly premium, based on income, the program could be fully funded, while providing substantial yearly savings for most individuals and businesses that now pay for health benefits. That yearly premium would take the place of all current premiums, co-pays, deductibles and out of pocket expenses.

"I wish to thank my colleagues in the legislature for their leadership in this historic vote," says Senator Kuehl. "For the first time, the legislature has approved a reform that would provide every Californian with the health coverage we need, while securing our right to choose our doctors simply and control costs. This is a very different approach from those that would require us by law to buy the insurance industry's products without changing the conditions that result in double digit increases in our premiums—and decreases in our coverage—every year. SB 840 will make quality healthcare available to each of us while preserving our freedom of choice as consumers and patients. I urge the Governor to do the right thing and sign this bill."

Here's what you can do if you agree with me that this reform is important:

1. Call Governor Schwarzenegger and register your support for this bill. It's easy. Call 916/445-2841. Press "1" for English. Press "2" to voice your opinion. Press "4" for SB 840. Press "1" to agree. That's it.
2. Encourage your friends to do so also.

Health Care For All!

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