AB 1945 & SB 1440 VETOED !

To All CAHU Members......

CAHU has GREAT NEWS for you! ! !

As of late Tuesday, September 30 (the deadline for the Governor to sign or veto some 900 bills passed by our state legislature), among the many bills he vetoed were many health care related bills......among which were.....

• AB 1945 - Individual Health Plan Rescission Bill -VETOED
• SB 1440 - 85% Medical Loss Ratio Bill -VETOED
• SB 840 - Single Payer Bill -VETOED

W O W W W W W W W W W

CAHU is very proud of the efforts its members made during our recent Operation Shout campaign to flood the Governor's office with e-mails asking him to veto the first two of these bills (we were quite sure, as was Sen. Kuehl, that he would veto SB 840 again).

There is no question that CAHU's grassroots efforts to get the word out to the right politcal office holders, as well as to have worked all year to amend these bills and finally to work to defeat them has been highly successful!

THANKS TO ALL OF YOU WHO PARTICIPATED IN THIS MONTH'S OEPRATION DRUMBEAT! [All 730 of you; now if we can only get the other 1770 CAHU Members to get "off their tails" and participate- when we need to do our next Operation Drumbeat in 2009 - we can have an even bigger impact ]

And trust me, in 2009 I expect similar or worse legislative challenges to be thrust upon CAHU, and we will need everyone's support next year. Stay tuned.....

Freedom of Choice

Sam Smith
CAHU VP, Public Affairs

It has been said that "freedom of choice is a universal principle to which there should be no exceptions". Actually, it was Mikhail Gorbachev who made this statement in an address to the United Nations on December 7, 1988. Mr. Gorbachev was right. Freedom to choose to succeed and freedom to choose to fail are certainly paramount in the list of choices we make every day.

We will watch carefully over the next 48 hours to see what choices Governor Schwarzenegger makes as he considers a Hodge podge of piecemeal legislation masquerading as this legislatures attempt at health care reform. Nearly all the measures on his desk will increase the cost of health insurance in California and increase the number of uninsured. The potential impact on the health insurance and health care landscape in California is enormous. The impact on our business could be devastating.

Yet, I watch with utter amazement as I witness the reaction to this by our membership. We are in the midst of the battle for the future of choice in health care, the choice to engage the services of a health insurance professional and the choice between public and private alternatives and yet we are complacent in our response. Our most recent call for action with Operation Drumbeat on AB 1945 (on rescissions) and SB 1440 (85% Medical Loss Ratio) met with only moderate response. Out of nearly 2500 association members in California, only 730 felt their business was important enough to defend it.

It remains to be seen what choices the governor will take on the health care bills that are on his desk. Rescission, balanced billing, mental health parity, mandated maternity, medical loss ratios and more. Choices that will change the landscape of California health insurance.

What also remains to be seen is what choices we as members of the California Association of Health Underwriters will make. There are two things that I know are certain:

1. Change is coming.
2. With change there will be winners and losers.

We have a choice as to which we will be, winners or losers during this time of change. What choice will you make?

Legislative Session Ends with Qualified Success

2007-2008 Legislative Session-Chaos and Compromise
Sam Smith
CAHU VP Public Relations

While the majority of Californians enjoyed the Labor Day holiday, both the California State Senate and Assembly were busy doing what they do best (and what that actually is would be good fodder for debate). In describing the closing hours of this session, Assemblyman Roger Niello, a Republican from California's 5th district summed it up best when he reminded us of Mark Twain's famous comment that "those who are interested in the law or sausage should never watch either being made!" On the last night of the Assembly session, over 100 bills were taken up on the floor of the Assembly in just a few hours. In the words of Assemblymember Niello, "it should be illegal to have this much fun!"

SB 1522 (Steinberg)
Of specific interest to the members of the California Association of Health Underwriters on the floor of the Assembly was SB 1522 (Steinberg), the measure that would have established 5 categories of individual health insurance and in the process set in motion unintended consequences that would have dismantled or greatly eroded our individual health insurance market. On Friday, August 29th, in a tie vote with 4 Democratic members voting against the measure (Assembly Majority Floor Leader Albert Torrico (D-20th), Cathleen Galgiani (D-17th), Felipe Fuentes (D-39th) and Jose Solorio (D-69th), SB 1522 failed on a 36-36 tie vote. The measure was later resurrected on a motion to reconsider by Assemblymember Dave Jones (D-9th). The next day, August 30th, the motion to reconsider passed on a 47-28 vote with all Democrats voting in favor and the bill seemed poised to sail through to a final vote for passage. Upon passage, the bill needed to go back to the Senate for concurrence with Assembly amendments. Then, on to the Governor. On August 31st, with the bill on the calendar and ready for final passage, the vote was delayed in the Assembly. Meanwhile, the Senate abruptly adjourns for the day at 1 pm. With the Senate adjourned and concurrence not possible before the August 31st deadline for passage, SB 1522 languished and never came to a final vote, essentially killing the bill. A circumstantial victory, but a victory none the less!

SB 840 (Kuehl)
In the Senate meanwhile, SB 840 (Kuehl) Single Payer, the Senators concurred with the Assembly amendments and the bill is on its way to the Governor where a similar measure was previously vetoed by Schwarzenegger.

SB 1440 (Kuehl)
The Senate also concurred with significant Assembly amendments on this measure that requires health care plans to spend at least 85 percent of premiums on medical care an sent it on to the Governor. In light of the significant changes made to this bill in the closing days of the session, there is a much more likely chance the Governor will sign this legislation.

At the moment, the Governor is keeping his pen in his drawer and refusing to sign any bill until the legislature sends him a budget. After setting a modern day record for lack of action on a budget and no compromise in sight, it is any one's guess how the story will play out.

Let there be no doubt, this legislative session is an outstanding example of the need for redistricting reform and for a Yes vote on Prop 11. To say the least, we found new meaning in the phrase "saved by the bell"!