Health system reform stumbles in California

The setback means the federal government might have to take a larger role on the issue, policy experts said.

By Doug Trapp, AMNews staff. Feb. 18, 2008.

Washington -- A California Senate committee has at least delayed, and may have killed, the state's health system reform bill after an independent legislative analysis concluded that the package could cost billions more than initially estimated.

Supporters, including California Gov. Arnold Schwarzenegger, vowed to keep working on the measure, even with the state facing a projected $14.5 billion budget deficit by June 2009. "This is a bump in the road," he said. "Whenever you deal with big issues, they are never easy to accomplish."

The bill, the Health Care Security and Cost Reduction Act, was a compromise between the Republican governor and Democratic legislative leaders that was a year in the making. After its defeat, policy experts said states will continue to tackle health reform but that the federal government might have to take a larger role.

"The failure of this ... due primarily to budget concerns reinforces the need for federal reforms to provide the financial support to extend coverage to all of America's uninsured," said American Medical Association Trustee Samantha L. Rosman, MD.

The Senate Health Committee rejected the bill 7-1 on Jan. 28, with three senators abstaining. The panel's four Republicans voted no. The California Assembly approved the measure 46-31 on Dec. 17, 2007, also without Republican support.

The California Medical Assn. did not take a position on the bill but worked with its authors. CMA President Richard Frankenstein, MD, said the effort advanced the cause of reform. "We have been working on this issue for many years and will continue to do so as long as it takes to make sure all Californians have access to top-quality health care."