Unions protest health plan

Prodded by Gov. Arnold Schwarzenegger's veto of a plan backed by Democrats to expand health care coverage, labor unions Wednesday began 48-hour vigils around the state to oppose the Republican governor's proposal.

The vigils, including prayer and fasting, outside the Capitol and the governor's district offices mark a change in what until now has been a behind-the-scenes effort by labor to influence the debate over the 6.7 million Californians without health insurance.

Bill Camp, executive secretary of the Sacramento Central Labor Council, AFL-CIO, said the public demonstrations are "not about one group or another."

"It's really about asking the leadership of our state to put together real, affordable, quality health care that stops the escalating costs that are strangling our business communities and our workers," Camp said at a news conference outside the Capitol.

But the campaign is being directed by a prominent Democratic political consultant, Chris Lehane, who was hired by the California Labor Federation, AFL-CIO. The effort also includes the Service Employees International Union as well as consumer and faith-based groups.

During a conference call with reporters, federation chief Art Pulaski charged that Schwarzenegger's plan does not "share responsibility" – as the governor contends – but actually "gouges the middle class."

"The governor may be a well-meaning man, but he has proposed a bad plan," Pulaski said.

Schwarzenegger's plan would require individuals to purchase health care insurance, with the state providing subsidies for the poor. But union leaders contend many low- and middle-income families would still not be able to afford coverage.

Under the plan, individuals earning more than $35,735 and families of four making more than $72,275 would not receive subsidies, according to a report released Wednesday by the federation.

According to the report, the governor's plan would cost the average middle-class family between $8,100 and $13,000 a year – forcing them to choose between financial security or breaking the law.

Sabrina Lockhart, a spokeswoman for Schwarzenegger, disputed the findings, which she said were based on "fuzzy math" and a plan the governor outlined in January.

That plan established a minimum insurance level with a $5,000 deductible and out-of-pocket limits of $7,500 per person and $10,000 per family.

Under a revised plan released last week, the governor's plan no longer defines minimum benefits. Instead, the secretary of health and human services would establish a minimum level, which would cover medical, hospital and preventive and prescription services.

But union officials said such decisions should not be made by a political appointee who does not answer to voters.

Unions supported Assembly Bill 8 by Assembly Speaker Fabian Núñez, D-Los Angeles, and Senate President Pro Tem Don Perata, D-Oakland, which did not have an individual mandate. Schwarzenegger vetoed the bill last week, saying it would place too much of the economic burden on employers.

The governor's plan spreads the $14 billion cost of universal coverage among employers, individuals, insurers, government and health care providers.

Instead of a paying a flat 4 percent fee of their payroll, as Schwarzenegger proposed in January, they now would pay from zero to 4 percent, based on a sliding scale of their revenue.

Democrats are insisting that employers pay a minimum of 7.5 percent.

Administration officials said the governor's revised plan is an effort to address the needs and concerns of the middle class.

But Lehane, a former Clinton White House spokesman, said the governor's revised plan makes health care "less affordable."

"Everybody wants to get something done," he said. "The question is, 'What's affordable?' The governor's plan isn't."

In the 10 months after Schwarzenegger released his initial plan, labor leaders generally refrained from criticizing his proposal.

Lehane said the strategy changed when it became "very clear" the middle class would bear an "enormous burden" under the governor's proposal.

In announcing his revised plan last week, the governor said he expected 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 the Assembly Health Committee has not scheduled a hearing on the governor's plan until Oct. 31.

Some Democrats say the Legislature – which has been in special session for more than a month – may not be ready to act until it reconvenes in regular session in January.

About the writer:

• The Bee's Aurelio Rojas can be reached at (916) 326-5545 or arojas@sacbee.com.