California Reform Bill Clears First Hurdle

California Governor Schwarzenegger and Speaker of the General Assembly Nunez have succeeded in passing their compromise healthcare reform bill through the General Assembly. According to Yahoo.com, the legislation must still be approved by the state Senate before it can be signed into law. The California Senate President has expressed concerns about how the bill will affect the state budget, which is already overtaxed.

The bill would require all Californians to purchase health insurance. Subsidies would be available for the low-income. Insurance companies would not be permitted to reject applicants on the basis of their health status. State funds would be allocated towards community health clinics in an effort to steer patients away from expensive emergency rooms. California hopes to pay for these efforts by imposing a cigarette tax, and by assessing employers who do not provide health coverage to their employees. Hospitals would also be asked to contribute towards healthcare costs.