ABX1-1 -- Current Status

First, welcome to the CAHU Legislative & Public Affairs Blog. I hope this becomes a great asset to the CAHU community.

Second, there's this bill. It's called Assembly Bill ABX1-1 although it's official name is the Health Care Security and Cost Reduction Act. It's before the State Senate and it's important.

ABX1-1 is the compromise health care reform package worked out by Governor Arnold Schwarzenegger and Assembly Speaker Fabian Nunez. You can read the legislation at CAHU's Healthy Solutions web site. There's a lot to it. A whole lot. Some of it is good for our clients and our profession; some of it isn't. There will be other posts dealing with the substance of the bill; the purpose of this one is simply to update readers on where it is in the legislative process.

ABX1-1 was passed by the Assembly on December 17th of last year, the same day the current form of the bill was first published. Needless to say, few, if any legislators, had a chance to read the legislation they were voting on. To keep momentum building behind health care reform, Democrats in the Assembly passed out the bill, relying on the Senate to provide a thorough vetting.

And that is what is likely to happen. The Senate Health Committee is scheduled to take up the bill on January 23rd. Senator Shiela Kuehl chairs this committee and has serious problems with the bill. She intends to have her committee to thoroughly consider every aspect of the bill.

Although Senate President Pro Temp Don Perata first expressed concern about passing a $14.4 billion health care reform package before lawmakers figured out how to address a looming $14.5 billion state deficit, he seems to be softening that stance. Since the law takes effect only if a financing initiative passes (discussed below), he has hinted recently that it makes sense to allow California's voters to have the final say.

Nonetheless, Senator Perata asked the non-partisan and highly respected Legislative Analyst's Office to analyze the impact ABX1-1 is likely to have on the state's finances. That report is expected to be available prior to next week's Senate Health Committee hearing.

Assuming the Senate Health Committee moves ABX1-1 forward, it would next be heard by the Senate Appropriations Committee. If they approve the bill it would be voted on by the full Senate.

Since the Senate will have likely made some changes to ABX1-1 it would then go back to the Assembly for concurrence in those amendments. Assuming they agree to them (a very safe assumption) ABX1-1 would go to the Governor for signature. Because it was introduced during a special session of the legislature (thus the "X1" designation in the bill number) and because that special session continues, ABX1-1 would normally take effect as soon as the governor signs it.

However, ABX1-1 creates a framework for changing California's health care system, but doesn't provide any resources. Instead, the Governor and Speaker have started the process to qualify an initiative for the November 2008 ballot. If that initiative passes, the provisions of ABX1-1 will take effect. If it fails, however, then they won't. In other words, the legislation is wholly contingent on passage of the initiative.

Where does CAHU stand on the bill? We've got grave concerns with several of its provisions. CAHU and the National Association of Insurance and Financial Advisors-California, recently sent a letter to Health Committee members and Senator Perata asking for substantial changes. A copy of the press release describing our concerns is available at the Healthy Solutions site.