In light of the significant number of poor children about to be dropped from a current publicly endorsed health insurance program, California’s lawmakers have come to together and voted to levy a tax on insurance companies to help continue the program, which would have otherwise been cut completely in order to comply with the state’s budget.
The bill was a last minute success thanks to both the Schwarzenegger administration and support of the Democrats. Both parties came together, with help from local insurance companies. The bill’s passing is hoped by many to be a step in the right direction and a model for a similar bill to be passed at the federal level.
The program is properly titled, Healthy Families, and currently insures nearly 700,000 needy California children, whose parents earn slightly too much for them to be considered for Medicaid coverage. The program was set to be eliminated as part of the $175 million reduction plan made by the state of California’s lawmakers and Governor Arnold Schwarzenegger.
Although, the Democrats and Republicans have failed to see eye to eye lately in terms of the hot topic of health care reform, the two parties came together for a unanimous bipartisan budgeting agreement and comprised the necessary two-thirds vote in order to pass the bill. The bill was voted in favor of, 27 to 8.
Republican state senator Dave Cox said, “In this particular situation, I didn’t see this as a tax increase.” Cox helped pass the bill, yet he was one of the many angry Republicans who fought against various other tax increases.
“To have 600,000 or 700,000 kids walking around without coverage would have been a disaster. It was just the right thing to do,” Cox said.
The insurance program had been denying enrollment since July. They had accumulated a hefty waiting list of 71,000 children. Already $196 million in debt, the program was preparing to drop 600,000 more.
Since the bill did in fact pass, Gov. Schwarzenegger has enlisted a group of health insurance companies that already participate in the state’s Medicaid program.
If you are looking for a free health insurance quote for the state of California and/or Arizona, please visit ASJ Insurance & Financial Service’s website http://www.asjhealthinsurance.com/ or give them a call today! 1-877-275-2201
Factual information in this blog was obtained from Health Insurance News.