New America Foundation’s Statement on Gov. Schwarzenegger’s New Health Care Proposal

(SACRAMENTO – January 8, 2007) – Given the complexity of California and the reach of this health care proposal, Governor Arnold Schwarzenegger has offered a vision that represents a giant step toward the resolution of a problem that has vexed America’s policymakers for years.

Many other states are exploring solutions to rising costs and the deterioration we’re seeing in America’s health care system. But Gov. Schwarzenegger’s map for covering all Californians far exceeds the scope of any other effort and is certain to add momentum to health reform in other states and in Washington.

“Governor Schwarzenegger’s plan goes well beyond covering more people. It is a comprehensive vision of how to create a rational and efficient health care market,” said Peter Harbage, a Senior Program Associate with the New America Foundation in Sacramento. “There is no other way to say it: the plan is bold.”

Perhaps most importantly, the governor’s proposal is also a serious attempt to identify a plan that reflects the key principles of both major parties and seeks to move beyond the stalemate that has blocked so many previous proposals. There are still many critical debates and decisions to be made, but this proposal moves the discussion in the right direction. It is based on both personal and shared responsibility. It preserves choice and creates efficient markets that do not exist now, and it lays the foundation to restore California as a leader in our nation's health care system.

For the last 18 months, New America has worked extensively with a range of groups in California on health reform, including the Governor and his staff. We are very pleased that so many good ideas are now moving forward in the policy process in California that represent centrist politics.

Recently, the New America Foundation released a report titled “Paying a Premium” that discussed how cost-shifting from the uninsured increases the premiums of the insured. The analysis found that an average California family pays an additional $1,186 in annual health care premiums due to the state’s uninsured rate. The report is available at http://www.newamerica.net/publications/policy/a_premium_price.

"This plan qualifies Governor Schwarzenegger as a leader in health reform discussions in Sacramento and in Washington, DC," said Len Nichols, New America's Director of Health Policy. "It is courageous, comprehensive, and the pieces fit together into a cohesive whole. But even more importantly, the Governor found a way to do the right thing even though the costs are high and must be shared broadly. The costs would be higher tomorrow, and he has recognized that, and we congratulate him for being willing to speak so plainly about his state's and nation's urgent health care crises," Nichols added.

Massachusetts legislative leaders and former Governor Romney have received a lot of deserved attention and credit for being the first to fashion a bi-partisan solution to the coverage problem. But many pessimists still said, ‘well, Massachusetts is unique, their uninsured rate was low (about half California’s) and they already had a large fund that was paying for most of the care received by the uninsured.’ Nichols concluded, “Now Governor Schwarzenegger has shown that no uninsured hill is too high to climb if political leaders are willing to roll up their sleeves and work together across artificial political divides. This should and will inspire other state and federal leaders to stop saying ‘it can’t be done’ and start saying ‘how can WE do this, too?’”

Learn More About: Len Nichols, Peter Harbage
Related Programs: New America in California, Health Policy Program
Topics: Health Policy