Health care plan called 'gimmick'

Gov. Arnold Schwarzenegger's health care plan will not make it out of the Legislature, according to a key Democratic lawmaker who dismissed as a "gimmick" the governor's proposal to use the state lottery to help cover the 6.7 million Californians without insurance.

The Republican governor, who will veto the Democrats' counter-proposal as early as today, said this week he expects to strike a deal with Democrats within two weeks and begin working on placing a financing proposal before voters on the November 2008 ballot.

But Assemblyman Hector De La Torre, who chairs the Assembly Rules Committee that will likely get first crack at Schwarzenegger's plan, said Democrats may not be ready to act until January.

De La Torre, a top lieutenant to Assembly Speaker Fabian Núñez, lamented that it took the governor 10 months to put into legislative language the plan he outlined in January.

"This is something you don't want to rush into," De La Torre, D-South Gate, said in an interview Wednesday. "Taking a few extra weeks is the responsible thing to do."

He predicted that the governor's plan will not get the votes it needs in the Democratic-controlled Legislature. De La Torre said that after the governor vetoes the Democrats' plan -- Assembly Bill 8 -- as he has said he will, the two sides will have to agree on an alternative plan.

De La Torre said it's not the Democrats' fault that the governor couldn't get a Republican author for his proposal, and that a prolonged budget impasse left so little time for negotiations that the governor was forced to call a special session.

A deal, De La Torre said, could still be reached in January when the Legislature reconvenes in its regular session. He said that would allow time for the financing proposal to be placed on the November ballot.

De La Torre derided as "a gimmick" the governor's proposal to lease the lottery to a management company and use some of the proceeds to help expand health care.

"Taking money that now goes to education and using it for health care would be like robbing Peter to pay Paul," De La Torre said.

The administration projects that a 40-year license to operate the lottery would raise an additional $2 billion annually.

Under the governor's proposal, the state would replace money from the lottery that now goes to education with funds from the state's general fund.

In an interview Thursday, Núñez held out hope that an agreement will ultimately be reached. But the speaker said Schwarzenegger's proposed fee structure for employers is unacceptably low.

Under the governor's plan, employers that do not offer health care coverage will be required to contribute from zero to 4 percent of their payroll, based on a sliding scale of their revenues, to help cover their workers.

"If on the average, (California employers) pay 13 1/2 percent of payroll -- those that provide health care -- why should anybody get away scot-free with zero or 2 percent?" said Núñez, D-Los Angeles.

The speaker remains adamant that employers pay a minimum of 7.5 percent of their payroll for health care and make coverage more affordable for middle-class and working-class workers.

Under Schwarzenegger's proposal, the state would provide subsidies for individuals earning less than $25,525 and for families of four earning less than $51,000.

About the writer:

• The Bee's Aurelio Rojas can be reached at (916) 326-5545 or arojas@sacbee.com. Jim Sanders of The Bee Capitol Bureau contributed to this report.