Released: November 25, 2006

Healthcare looms as key issue for state employers

Source: Marc Lifsher, Los Angeles Times (Free Registration)

Healthcare for millions of uninsured Californians looms as a top concern for the state’s employers as Sacramento gears up for another session of the Legislature. Gov. Arnold Schwarzenegger said this month that cutting healthcare costs and providing better care for the uninsured were top priorities for 2007. And lawmakers are floating ideas as well.

“We’ve got six major issues, and healthcare is No. 1,” said Scott Hauge, president of Small Business California, a nonpartisan advocacy group based in San Francisco.

Michael Shaw, assistant state director of the National Federation of Independent Businesses, said, “The No. 1 issue we are dealing with is healthcare reform. The governor stated he wants to make it a priority, and we’re expecting significant action.”

Business groups say they are wary and wonder whether employers would be asked to cover much of the cost.

In particular, they ask, who is going to pay the upward of $9-billion bill to guarantee care for the 1 out of every 6 adults and children in California who lacks health coverage?

Small-business owners, who say they can’t afford to offer health insurance, gripe that they could be forced out of business if hit with an expensive mandate.

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