Davis to sign 'historic' health care insurance bill today
Opponents, already preparing for court, call it disastrous for businesses
Zachary Coile, Chronicle Political Writer Sunday, October 5, 2003
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Gov. Gray Davis, battling to save his political life, plans to sign a controversial health insurance bill today that could expand coverage to more than 1 million uninsured Californians, but is bitterly opposed by state businesses.
The measure -- known by its Senate bill number, SB2 -- would require employers with more than 200 employees to provide health care coverage for the workers and their families by Jan. 1, 2006. Companies with 50 to 199 employees would be required to offer coverage to their employees a year later.
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The measure also has ramifications in Tuesday's recall election. Republican front-runner Arnold Schwarzenegger has opposed the bill, saying it is yet another onerous mandate that Democratic lawmakers are putting on the backs of California companies.
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The law would require employers to pay at least 80 percent of the cost, leaving workers to pay the remaining 20 percent. Contributions for low-wage workers, however, would be capped at 5 percent of their wages. A state board would set limits for deductibles and copayments.
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Critics are saying that business will shed jobs to avoid paying, or will leave the state.