California’s top health official told a group of Valley business owners that Gov. Arnold Schwarzenegger will settle for nothing less than a complete reform of the state’s troubled health care system and is asking for input from the business community. “It’s not their problem, it’s all of our problems,” said Kim Belshe, secretary of the California Health and Human Services Agency and a member of the governor’s cabinet, at an April 12 seminar hosted by the United Chambers of Commerce of the San Fernando Valley. She said the governor needs backing from businesses to address hidden costs and provide coverage for the state’s estimated 6.5 million underinsured Californians, with Los Angeles County representing the largest concentration. “It’s past time for California to step up,” she said. Belshe said the underinsured population causes a huge cost increase for all residents. She pointed out that people without insurance typically put off tending to minor illnesses or injuries until the problems require serious medical attention, usually in an emergency room where costs are higher. Schwarzenegger’s plan, announced in January, calls for a mix of reducing hidden taxes, lowering costs and increasing health education programs, along with providing lower-income people with affordable coverage and boosting Medi-Cal rates. It would also reduce regulatory barriers to encourage low cost models, such as retail clinics, and prioritize the most needed hospital projects. “We really need to take on change more broadly,” Belshe said. But the most contentious element proposes securing health care for almost all Californians by requiring coverage. The costs for the services would be split among state government, businesses and individuals. “Everybody would pay,” she said. Belshe reasoned that the rule would mandate a certain amount of responsibility from those who need coverage. “It does have some obligation on behalf of the individual,” she said. For businesses, Schwarzenegger has proposed a system in which employees can make tax-sheltered contributions to health insurance. Additionally, the governor wants to align state tax laws with federal rules and allow pre-tax contributions to personal health savings accounts. Dr. Keith S. Richman, an executive vice president for Lakeside Healthcare Inc. in Glendale and an emcee of the event, which also featured Sacramento Bee columnist Daniel Weintraub, called the situation a “health care crisis” that directly affects businesses and workers. “Businesses are forced to deal with these costs and a larger share of our personal income goes to health care,” he said. Richman, who served a term in the California Assembly representing the northern Valley and Santa Clarita, said the system badly needs reforming and praised Schwarzenegger for his efforts. “We’re not using our health care dollars the best way we can,” he said. “But this is a start.”
