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September 28, 2007

Long Beach Chamber Tackles Broken Healthcare System, Endorses Governor's Plan


Business leaders promote shared responsibility as key to reform


The Long Beach Chamber endorsed Governor Schwarzenegger’s health care reform proposal today after months of discussions and conversations with its members, hospital CEO’s and Administration staff.

With 6.5 million Californians uninsured for all or part of the year – more than any other state in the nation – the Long Beach business community endorsed Gov. Arnold Schwarzenegger comprehensive plan to reform California's broken health care system by addressing the hidden costs that result in billions of dollars in higher premiums and taxes.

The Governor’s proposal would impose a four percent payroll fee on employers with 10 FTE (full-time equivalent) employees or more who do not offer employee health insurance coverage. While no proposal reflects every concern of every stakeholder, the Governor’s proposal comes closest to sharing responsibility among as many different stakeholders as possible.

Citing that concept of shared responsibility, Chamber leaders endorsed the Governor’s plan as the model the State Legislature should use to craft health care reform during the Special Session. The Chamber’s support for the Governor’s plan does not extend to how the final legislation may look. The Chamber will adopt a public position once it is taken up in by the Legislature.

Governor Arnold Schwarzenegger:

“The Long Beach Chamber knows that comprehensive health care reform is good for business,” said Governor Arnold Schwarzenegger. “Health care costs are spiraling out of control for businesses and workers, making it harder for them to compete. My plan would reduce the approximately $14 billion hidden tax employers pay every year bringing costs down for everyone.”

Matt Kinley, Chairman of the Board:

“While we still have concerns, the Chamber supports Governor Schwarzenegger’s approach. More importantly, the Long Beach business community cannot stand along the sidelines and not be a voice for the job-creators and small businesses of this community. The cost of doing nothing far outweighs the risks of taking on this challenge.”

Byron Schweigert, Immediate-Past Chairman:

“With the prospect of healthcare reform being imminent, it is more important now than ever for business to get involved in the health care debate. The Governor is on the right track and has done an amazing job of promoting a dialogue by calling both parties together during the special session to address the health care challenges within California.”

Randy Gordon, President and CEO:

“The Chamber has long been opposed to employer mandates and legislation that creates a State-run health bureaucracy. The Schwarzenegger Plan transcends such proposals, understanding that employees, employers, care providers and health plans must be proactive about healthcare.” Mr. Gordon continued, “Eliminating the hidden tax will bring down costs and overhead that small businesses pay in coverage each year, while also resulting in a more competitive market for healthcare.”

 

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