BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 2|
|Office of Senate Floor Analyses | |
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IN CONFERENCE
Bill No: SB 2
Author: Burton (D) and Speier (D)
Amended: 6/23/03
Vote: 21
SENATE INSURANCE COMMITTEE : 6-3, 4/30/03
AYES: Speier, Escutia, Figueroa, Perata, Scott, Soto
NOES: Johnson, Morrow, Oller
SENATE HEALTH & HUMAN SERV. COMMITTEE : 9-3, 5/7/03
AYES: Ortiz, Alarcon, Chesbro, Figueroa, Florez, Kuehl,
Romero, Vasconcellos, Vincent
NOES: Aanestad, Ashburn, Battin
ABSENT/NO VOTE RECORDED: Escutia
SENATE APPROPRIATIONS COMMITTEE : 8-5, 5/29/03
AYES: Alpert, Bowen, Burton, Escutia, Karnette, Machado,
Murray, Speier
NOES: Battin, Aanestad, Ashburn, Johnson, Poochigian
SENATE FLOOR : 25-14, 6/4/03
AYES: Alarcon, Alpert, Bowen, Burton, Cedillo, Chesbro,
Ducheny, Dunn, Escutia, Figueroa, Florez, Karnette,
Kuehl, Machado, Murray, Ortiz, Perata, Romero, Scott,
Sher, Soto, Speier, Torlakson, Vasconcellos, Vincent
NOES: Aanestad, Ackerman, Ashburn, Battin, Brulte, Denham,
Hollingsworth, Knight, Margett, McClintock, McPherson,
Morrow, Oller, Poochigian
ABSENT/NO VOTE RECORDED: Johnson
ASSEMBLY FLOOR : 45-30, 7/7/03 - See last page for vote
CONTINUED
SB 2
Page
2
SUBJECT : Health care coverage
SOURCE : California Labor Federation, AFL-CIO
DIGEST : This bill enacts the Health Insurance Act of
2003 to ensure all working Californians and their families
are provided health care coverage. (NOTE: The bill makes
only findings and declarations and is to be enacted as a
vehicle for the same subject matter.)
Assembly Amendment makes a technical change in order to
have the Senate non-concur and send this bill to Conference
Committee.
ANALYSIS : Existing law provides for the creation of
various programs to provide health care coverage (coverage)
to persons who have limited incomes and meet various
eligibility requirements. These programs include the
Healthy Families Program (HFP) administered by the Managed
Risk Medical Insurance Board (MRMIB), and the Medi-Cal
program administered by the State Department of Health
Services. It also provides for the regulation of plans by
the State Department of Managed Health Care and health
insurers by the State Department of Insurance.
This bill enacts the Health Insurance Act of 2003 and makes
the following findings and recommendations:
1. Working Californians and their families should have
health insurance coverage.
2. Most working Californians obtain their health insurance
coverage through their employment.
3. In 2001, more than 6,000,000 Californians lacked health
insurance coverage at some time and 3,600,000
Californians had no health insurance coverage at any
time.
4. More than 80 percent of Californians without health
insurance coverage are working people or their families.
Most of these working Californians without health
insurance coverage work for employers who do not offer
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health benefits.
5. People who are covered by health insurance have better
health outcomes than those who lack coverage. Persons
without health insurance are more likely to be in poor
health, more likely to have missed needed medications
and treatment, and more likely to have chronic
conditions that are not properly managed.
6. Employers who do not provide health benefits to their
workers have an unfair competitive advantage over those
employers who provide health benefits. Employers who
provide health benefits often pay directly for the
failure of other employers to provide health benefits by
providing health benefits to spouses and other
dependents who should be covered by the spouse's or
dependent's employer. Employers who provide health
benefits also pay directly when a previously uninsured
person becomes an employee and the accumulated health
costs due to lack of insurance burden the employer
providing health benefits.
7. Health benefit costs in California generally are lower
than costs in other states but employers generally are
less likely to offer coverage.
8. Controlling health care costs can be more readily
achieved if all working people and their families have
health benefits so that cost shifting is minimized.
9. It is the intent of the Legislature to assure that
working Californians and their families have health
benefits and that their employers shall either provide
those benefits or pay a user fee to the State of
California so that the state may serve as a purchasing
agent to pool those fees to purchase coverage that would
otherwise have been purchased directly by employers.
10.While covering all working people and their families
will substantially reduce the number of Californians
without health insurance, several million Californians
will still lack health coverage.
11.It is therefore not the intent of the Legislature to
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reduce or eliminate funding for safety net programs that
provide access to care for those who remain uninsured.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 7/8/03)
California Labor Federation, AFL-CIO (source)
Alliance of Catholic Health Care
Amalgamated Transit Union Locals 1555 and 1574
American Association of Retired Persons, California
American College of Cardiologists (California Chapter)
American College of Emergency Physicians (California
Chapter)
American Federation of Government Employees Local 1881
American Federation of State, County, and Municipal
Employees, plus Locals 1555, 1574, 1902
American Nurses Association of California
Art Directors Guild
Asian Pacific American Legal Center of Southern California
Association of Flight Attendants Local 11
Bakery Wagon Drivers Local #484
Being Alive Los Angeles
Brewery Soda and Mineral Water Bottlers of California Local
896
Building and Construction Trades Council of San Mateo
County
Building Material, Construction, Industrial, Profession and
Technical Teamster Union Local #36
Butchers' Union Local 120
California Association of Public Hospitals & Health Systems
California Commission on Aging
California Commission of the Status of Women
California Conference Board of the Amalgamated Transit
Union
California Conference of Machinists
California Faculty Association
California Federation of Teachers
California Independent Public Employees Legislative Council
State Insurance Commissioner John Garamendi
California Medical Association
California National Organization for Women
California Optometric Association
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5
California Organization of Police and Sheriffs
California Physical Therapists Association
California Professional Firefighters
California School Employees Association
California State Employees Association
California Teachers Association
California Women's Law Center
Central Labor Council of Alameda County
Central Labor Council of Contra Costa County
City and County of San Francisco
Coalition for Humane Immigrant Rights of L.A.
Commission on the Status of Women
Communications Workers of America Locals 9000, 9414, 9415,
9423, 9503 Congress of California Seniors
Consumer Federation of California
Consumers Union
East Bay Automotive Machinists Lodge 1546
Electric Workers Local 595
E-Loan
Engineers and Scientists of California, Local 20
Faculty Association of California Community Colleges, Inc.
General Teamsters Local 386
General Teamsters, Warehousemen, Cannery Workers & Helpers
Union #94
General Truck Drivers, Chauffeurs and Helpers Union Local
692
Glaziers, Architectural Metal & Glass Workers #718
Greenlining
Harman International
Health Access California
Hotel Employees & Restaurant Employees International Union
and Local 49
International Association of Bridge, Structural, Ornamental
and Reinforcing Iron Workers Union Locals 155 and 377
International Association of Machinists and Aerospace
Workers Local 1528
International Brotherhood of Electrical Workers Local
Union 11, 18, 100, 302, 551, 569, 1245
International Federation of Professional & Technical
Engineers Local 21
ITUP
JERICHO
Joint Council of Interns and Residents
Korean Resource Center
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Latino Issues Forum
League of Women Voters of California
League of Women Voters of Whittier and Sonoma County
Lieutenant Governor Cruz Bustamante
Los Angeles County Board of Supervisors
Machinists Automotive Trades District Lodge #190 of
Northern California
Marine Firemen's Union
Mental Health Association in California
Mexican American Legal Defense & Educational Fund
National Association of Broadcast Employees and Technicians
National Association of Letter Carriers Branch 183
Northern California District Council - International
Longshore and Warehouse Union
National Immigration Law Center
Office & Professional Employees International Union Local
#3
Older Women's League of California
Painters & Allied Trades District Council 36
Peninsula Automotive Machinists Union Local 1414
Planned Parenthood Affiliates of California
Planned Parenthood Golden Gate
Plumbers, Steamfitters & Refrigeration Fitters Local Union
#467
Professional and Technical Engineers, Local 21
San Diego-Imperial Counties Labor Council
San Francisco Labor Council
San Mateo Building & Construction Trades Council
Service Employees International Union Locals 104, 2028,
3998
Sheet Metal Workers' International Association
Southern California Typographical and Mailer Union Local
14904
State Building and Construction Trades Council
Teamsters Locals 350, 601, 517
Teamsters Joint Council 7 and 42
Union of American Physicians & Dentists
United Farm Workers of America
United Food & Commercial Workers Region 8 States Council
plus Locals 373, 839, 870, 1179
United Food & Commercial Workers Retiree's Club Locals
373R, 532
United Nurses Associations of California/ Union of Health
Care Professionals
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United Steelworkers of America
United Teachers of LA
Utility Workers Union of America Local 246
West Hollywood Democratic Club
Work and Family Coalition of Alameda County
Support, if amended :
California Association of Health Underwriters
California Association on Physicians Groups
OPPOSITION : (Verified 7/8/03)
Alhambra Chamber of Commerce
American Electronics Association
Blue Cross of California
California Assisted Living Association
California Bean Shippers Association
California Business Properties Association
California Business Roundtable
California Chamber of Commerce
California Farm Bureau
California Federation of Republican Women
California Grain and Feed Association
California Manufacturers and Technology Association
California Small Business Association
California State Floral Association
California Warehouse Association
California Women for Agriculture
Coalition of California Insurance Professionals
Life Priority Network
Metal Finishing Association of Southern California
Mueller Homes, Inc.
National Association of Insurance and Financial Advisors,
California
National Federation of Independent Business
Newport Beach Chamber of Commerce
Novy, Linda (Gardeners' Guild)
Orange County Business Council
Pacific Egg and Poultry Association
Paper, Pulp and Film Converters
Redondo Beach Chamber of Commerce
West Orange County Legislative Committee
Western Growers Association
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Women Insurance Agents' Association
Women Volunteering in Politics
ARGUMENTS IN SUPPORT : According to information provided
by the authors' office:
Working Californians and their families should have health
insurance coverage and that most working Californians
obtain their coverage through their employment. In 2001,
more than six million Californians lacked coverage at some
time, 3.6 million had no coverage at any time, more than 80
percent of these were working people or their families, and
most of these working Californians without coverage work
for employers who do not offer health benefits. People who
have coverage have better health outcomes than those who
lack coverage, are more likely to be in poor health, more
likely to have missed needed medications and treatment, and
more likely to have chronic conditions that are not
properly managed.
Employers who do not provide coverage to their workers have
an unfair competitive advantage over those employers who
provide coverage, and that employers who provide coverage
to dependents often pay directly for the failure of other
employers to provide coverage for those dependents.
Employers who provide coverage also pay directly when a
previously uninsured person becomes an employee and the
accumulated health costs due to lack of insurance burden
the employer providing coverage.
Controlling health care costs can be more readily achieved
if all working people and their families have coverage so
that cost shifting is minimized.
ARGUMENTS IN OPPOSITION : Blue Cross believes this bill
cannot achieve its aims due to Employee Retirement Income
Security Act (ERISA) preemption problems that may result
in higher rates. Under the federal ERISA preemption act,
state law cannot dictate what benefits an employer provides
if the employer is self-insured. Blue Cross states many
larger employers are self-insured, which means the mandates
for coverage and benefits do not affect them, and that the
extremely rich mandates in this bill will force even more
employers into self-insurance to avoid its mandate. As the
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healthier employer groups with fewer claims increasingly
self-insure, the remaining employers will have higher rates
since the pool would be sicker.
ASSEMBLY FLOOR :
AYES: Berg, Bermudez, Calderon, Canciamilla, Chan, Chavez,
Chu, Cohn, Corbett, Correa, Diaz, Dutra, Dymally,
Frommer, Goldberg, Hancock, Jerome Horton, Jackson,
Kehoe, Koretz, Laird, Leno, Levine, Lieber, Longville,
Lowenthal, Matthews, Montanez, Mullin, Nakano, Nation,
Negrete McLeod, Nunez, Oropeza, Parra, Pavley,
Ridley-Thomas, Salinas, Simitian, Steinberg, Vargas,
Wiggins, Wolk, Yee, Wesson
NOES: Aghazarian, Bates, Benoit, Bogh, Campbell, Cogdill,
Cox, Dutton, Garcia, Harman, Haynes, Shirley Horton,
Houston, Keene, La Malfa, La Suer, Leslie, Maldonado,
Maze, McCarthy, Mountjoy, Nakanishi, Pacheco, Plescia,
Richman, Runner, Samuelian, Spitzer, Strickland, Wyland
DLW:mel 7/15/03 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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