Tens of thousands of laid-off California workers could obtain federal aid for health insurance under legislation approved Thursday by the Assembly.
Assembly Bill 23 was approved without a dissenting vote and now goes to the Senate.
The bill, if signed into law, would take effect immediately as California struggles with an unemployment rate topping 10 percent.
"This bill is critically important for Californians facing some of the toughest times our state has known," said Assemblyman Dave Jones, D-Sacramento.
Jones teamed up with Republican Assemblyman Nathan Fletcher in proposing AB 23, which is sponsored by state Insurance Commissioner Steve Poizner.
The legislation would allow workers laid off from small businesses to qualify for the same subsidy now available to those from larger firms.
The federal government currently offers to pay 65 percent of the health insurance premium for laid-off workers who:
• Were employed by firms with a work force of 20 or more people.
• Left their jobs after Sept. 1.
• Retained health-care benefits formerly provided by their employer.
AB 23 would offer the same subsidy to employees cut from smaller firms, totaling two to 19 workers.
The bill also would require health plans and insurers to notify families about the program's availability.
The deadline for applying for the subsidy would be Dec. 31, and participants would be eligible for nine months of assistance.
The average monthly health insurance premium is about $400 for an individual and $1,100 for a family, according to the Assembly Appropriations Committee.
While federal stimulus funds would pick up two-thirds of the tab, participants must agree to pay the remaining 35 percent – or even more if their adjusted gross income exceeds $125,000.
Roughly 60,000 to 100,000 California individuals and families could benefit from AB 23, totaling up to $400 million in federal funds, the appropriations committee estimated.
"Everybody knows somebody who has lost their job," said Fletcher, a freshman San Diego lawmaker.
"Because the majority of Californians get their health insurance through their employer, when you lose your job, you face the unfortunate situation of losing your health insurance as well," he said.
AB 23 could save the state money by easing the burden on hospital emergency rooms, Fletcher added.
Gov. Arnold Schwarzenegger supports the concept of using federal stimulus funds to assist laid-off workers, but he has not announced a position on AB 23 and typically does not do so on any bill until it reaches his desk, aides said.
Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.
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