Subject: ABX1 1

November 21 , 2007

Dear Senator Maldonado and Assemblyman Laird:

The League of Women Voters of the Monterey Peninsula urges a no vote on ABX1 1. This bill fails to meet the goal of universal, affordable and comprehensive coverage on a continuous basis to all Californians. Health care premiums and out-of-pocket expenses compete with basic living costs. Many families are hard pressed to balance health care costs with their rents or mortgage payments, child care, food, transportation and unexpected but crucial bills.

ABX1 1 does not contain adequate cost controls. There are no cost controls over premiums, and no limits placed on co-payments, deductibles, co-insurance or hospital charges. We feel that the provisions to control increases in the cost to the state and local governments are not sufficient. Rising health care costs will place a significant financial
burden on stakeholders, with the notable exception of the insurance companies.

With the approval of this bill, employers will be required to pay up to 6.5 percent of payroll toward employee health care coverage. This spending range is less than many employers currently pay. There is concern that this lower standard for employer payments will erode the coverage benefits many individuals and families now have, as well as shift more of the cost burden to them.

Additionally, there is a lack of information regarding the funding mechanisms, employer responsibilities, and cost protections for consumers through such mechanisms as subsidies, tax credits, and Section 125 plans. It is important to have full disclosure of these details and have consideration of the unintended outcomes that ABX1 1 as written would provide.

Sincerely,

Janet Brennan, President
LWV of the Monterey Peninsula