Health Care Bill to Aid Working Families

SEIU members have been talking with legislators for the last year about our experiences with healthcare and why we need affordable healthcare we can count on – now. SEIU supports AB x1 1 because it makes healthcare more secure for those who have coverage and will expand coverage to millions who don't have it. AB x1 1 builds a stronger foundation for our healthcare.

The state Assembly on Monday, December 18, approved a health care plan that will provide health insurance for millions of uninsured working families.

The plan, which was negotiated by Assembly Speaker Fabian Nunez and Gov. Schwarzenegger, is strongly backed by SEIU and UHW (United Healthcare Workers West).

The SEIU California State Council unanimously voted to support the plan. We urge you to support this bill.

Highlights of the Health Plan:

  • The bill is being called ABx1 1
  • It will provide insurance to two thirds of the state's uninsured
  • The state will provide subsidies or tax credits to families who cannot afford insurance
  • Virtually everyone will be required to have health insurance
  • Insurance companies will have to provide insurance regardless of any pre-existing medical condition
  • Employers will be required to provide coverage or pay a percentage of payroll into a state fund

Health care facts that need to be fixed:

  • Having a job and working hard no longer guarantees healthcare. Over 80% of California’s 6.5 million uninsured are members of working families.
  • Businesses are struggling to provide healthcare and many are dropping coverage. According to the UC Labor Center, only 57% of the population received coverage through their employers in 2004, down from 59% in 2000.
  • Costs keep increasing. According to the Kaiser Family Foundation, healthcare costs increased 123% between 1990 and 2004, far more than inflation, economic growth, or wages.
  • Preventive care is eroding as more people are forced into high-deductible, catastrophic plans and can't afford to take care of basic health needs.
  • As individuals and businesses struggle, drug companies and some insurance giants like Blue Cross spend millions to stop reform because they profit from our current, flawed system.

What’s next?

  • It will need approval by the Senate, which may modify it.
  • Will then need to be signed by the Governor.
  • Then approval by voters, because it includes tax increases. More than 1 million signatures will have to be collected to place it on the November 2008 ballot.

We urge you to support this bill

  • AB x1 1 is an historic step forward. AB x1 1 will provide healthcare coverage to nearly 4 million people, the largest single expansion of healthcare coverage since Medicare and Medicaid were founded over 40 years ago.
  • AB x1 1 tackles escalating healthcare costs through bulk purchasing of drugs, better information for consumers about healthcare quality and cost, the creation of a powerful purchasing pool of consumers that would be 3-4 times larger than CalPERS, the creation of a public insurer to compete with private insurance companies, and prevention and wellness programs.
  • ABx1 1 sets a standard for employer contributions to health benefits on the job, just like the minimum wage sets a wage standard.
  • AB x1 1 gets billions of dollars more from the federal government for California, so hospitals can get paid a fair amount for Medi-Cal patients. The package includes $1.1 billion in net increases for county hospitals plus the opportunity to transition.
  • AB x1 1 provides real help to working and middle class families. It provides affordability assistance for people up to 400% of the federal poverty line: that’s $83,000 for a family of four.
  • AB x1 1 makes insurance companies play by fair rules. Insurance companies won't be able to deny people based on pre-existing conditions, and they’ll have to spend 85% of every premium dollar on providing healthcare.

SEIU is part of efforts to improve AB x1 1 by

  • making sure that employers don't "dump" workers into the pool without paying
  • giving the state medical insurance board (MRMIB) the authority to provide affordability protections to whole groups of people, not just to individuals on a case by case basis
  • clarifying the minimum benefits

What can you do?

  • SEIU members ask California State Senators and Assembly members to support AB x1 1.
  • We also ask you help keep improving AB x1 1 by preventing employers from "dumping" their workers into the pool without paying, supporting stronger affordability protections and clarifying the minimum benefits.


Don't Waste this Opportunity: Support AB x1 1 (Núñez, Perata)!