RNs Call on Legislature to Reject Insurance-Based Reform - Nurses Urge Democrats to Stand Up to Insurers

The California Nurses Association today announced its opposition to a
merged healthcare bill that combines previous legislation by Assembly
Speaker Fabian Nunez and Senate President pro Tem Don Perata, and urged
California legislators to take a strong stance against the health
insurance industry.

A CNA representative spoke in opposition to the merged bill, AB 8, at a
hearing today of the Senate Health Committee.

"We need a comprehensive overhaul of our current dysfunctional system,
not bills that tinker around the edges and reward the insurance industry
which has spawned the current crisis," said CNA President Deborah
Burger, RN.

Instead, Burger said, "the Legislature should show the political courage
and leadership to pass SB 840, as it did last year, and join us in a
broad, public campaign to persuade Gov. Schwarzenegger to sign the
bill." SB 840, by Sen. Sheila Kuehl, would establish a publicly
financed, single-payer system for California, utilizing the currently
mostly private provider network, a form of an enhanced and expanded
Medicare for all.

By contrast, AB 8, said CNA, would merely reinforce the existing
systemically flawed insurance-based system through a mandate on
businesses to provide insurance for their employees or pay into a system
to buy more insurance.

"In addition to being a windfall for the same insurance companies that
have become notorious for reaping huge profits through denial of care,
the bill is deceptive, and probably illegal," said Burger.

AB 8, says CNA is not universal, and equates more insurance with more
care. "Anyone who has seen Michael Moore's 'SiCKO' will immediately
recognize that insurance companies are the problem, not the solution,"
said Burger.

CNA criticized the bill for claiming it would require insurance
companies to offer insurance to everyone, so-called guaranteed issue.
But, the bill actually includes language that subverts that intent by
opening the door for exclusion of patients with serious medical
conditions who would be dumped on a public high risk pool.

"Even if it was real guaranteed issue, we don¹t need guaranteed issue,
we need guaranteed healthcare," said Burger. "The only way to achieve
that is through SB 840."

Further, she noted, AB 8 is unlikely to survive a legal challenge. A
similar bill has been thrown out by the federal courts for violating
federal retirement system law.

CNA also cited other concerns with AB 8:

* At a time when two new reports cite decreasing employer-based
coverage, it could encourage more employers to drop coverage for
their workers. The penalty for not providing employer-based
insurance is significantly less than what most employers currently
pay, an obvious incentive for employers to drop coverage entirely
or push their workers into cheaper, substandard health plans.
* It fails to rein in rising healthcare premiums, up 87% nationally
this decade.
* It provides no standards for what health coverage should include,
leaving a patchwork system with multiple health plans based on
ability to pay.

None of these problems arise with SB 840, which is universal, assures
uniform, comprehensive benefits for everyone, does not run afoul of the
federal retirement system law, and ends insurance industry profiteering
and denial of care, CNA noted.

Ultimately, CNA charged, AB 8 is a stalking horse for an eventual
"compromise" with Gov. Schwarzenegger on an insurance-based plan that is
in line with the Schwarzenegger proposal which has yet to be introduced
in the Legislature on its own.

"AB 8 is the governor¹s policy. The Democratic leadership should not
allow the governor to push them into abandoning their values and their
stated commitment to ensure genuine, comprehensive healthcare for
everyone," said Burger.

"Our message to the Democrats today is he cannot sign a bad bill unless
you send him one. Send him SB 840, not AB 8."

CNA/NNOC 2000 Franklin Street, Oakland, CA 94612
Tel: (510) 273-2200 | Fax: (510) 663-1625