Dave Cox Senate Report: December 2006

Health Care Reform - Topic Of The Day

The most hotly contested issue in this legislative session promises to be health care reform. The problem of uninsured individuals and access to health care is not new, but it seems that many here at the Capitol, most prominently the newly re-elected Governor, feel that now is the time to talk about ways to provide health care coverage for more Californians.

The debate usually starts out with some common misperceptions. The first is that there are 6 million uninsured people in California. This is almost certainly not true. Many people who are eligible for the state’s current Medi-Cal program, or Healthy Families program for children, are not enrolled and therefore should not count as being uninsured. Secondly, there are many people and families who can but chose not to enroll in private plans offered through employers that are counted as uninsured, even though they could be. In addition, many young people choose not to buy health insurance because they are healthy and do not perceive a need for the coverage. As they get older, they will likely enroll in a health plan. Finally, there are over a million people in California who are here illegally who are not eligible, and should not be eligible, for government provided health care. Admittedly, there is a gap between those with health insurance and those without, and that gap should be part of our focus.

Once we better understand the problem, and know that there are existing private and government provided health care plans available for almost everyone, we can more easily see the solution. The problem is that the costs of health care have been exceeding cost increases in the rest of the economy for well over a decade, making insurance plans for individuals and businesses more costly and less affordable for those with modest incomes who are not eligible for government programs.

The solution for this problem is to allow the private sector and the government to provide more innovative health care plans that cut costs by not providing services that some people may not need. The trend in health insurance legislation in California has been going in the opposite direction for many years, by requiring all health care plans to cover all sorts of things that are not needed by every individual in the state, therefore increasing the costs. The first solution is flexibility, choice and fewer mandates.

A second important part of the solution in my mind is the connection between individuals and the costs of their health care. Many of us go to a doctor today, pay the ten dollar co-pay, and leave thinking the cost is ten dollars when in fact it is much higher. My colleague Senator George Runner recently pointed out a good example of what we should be encouraging instead. In the area of laser eye surgery we are familiar with the actual cost of the procedure. We shop around among many providers to obtain the best service at the lowest cost. If we encourage or require more information to patients about the actual cost of the services they use, they will be able to make more informed decisions about how they use health care. This will encourage competition and efficiency in individual choices for health care, save money, and lower the cost of health insurance for everyone.

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Uninsured Drivers Law Finally Being Enforced

Since 1970, all California drivers have been required to carry automobile insurance. But we all know that not all drivers do so. Because of this, all of us who have insurance pay higher rates to insure us against “uninsured motorists.”

In 1997, the mandatory insurance law was changed to require car owners to provide the Department of Motor Vehicles (DMV) with a written certificate of insurance when we annually renewed our vehicle registration. This improved the situation but many drivers bought insurance to obtain the certificate and then dropped coverage soon thereafter.

The Legislature unanimously passed SB 1500 in 2004 to close this final loophole in our mandatory insurance law. This bill required insurance companies operating in California to provide the DMV with monthly updates on California drivers who purchase insurance for their cars. Those car owners who do not appear on the list are given warnings by the DMV that their auto registration will be suspended if they do not comply with the law.

Since October 1, 2006, when the law first authorized DMV to undertake registration suspensions, 180,000 motorists in California have been notified. If they do not take action, they are subject to a $1,000 fine for driving with suspended registration. If they are involved in an accident they could lose their driving license for a year and be subject to civil damages for personal injury or property damage.

When SB 1500 was considered in 2004, I supported the legislation so that auto insurance rates could be reduced in California as the number of uninsured drivers was reduced. Since there is no longer an excuse to avoid the law, I hope this happens soon.

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Hire A Hero, Hire A Vet

In honor of Veterans Day this year, the Employment Development Department (EDD) established a special feature on its website which highlights information and services available to veterans and their families.

Some of the special programs offered by the EDD for our veterans are:

Real Life Lines: A program assisting wounded veterans obtain employment as they transition to civilian life.

Transitional Assistance Program: A three day work shop assisting veterans with their job search by offering career consulting, resume preparation, and interviewing technique assistance.

Troops to Teachers: A program that provides incentive funding to support veterans interested in becoming teachers in California schools.

You can view this special area of the EDD website by clicking on:
http://www.edd.ca.gov/hireahero/

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California Lottery - Where The Money Goes

One of the most common questions I hear is how much money does the California Lottery raise and how is it allocated?

Here is the information from the California Lottery Commission:

Last year, the Lottery collected over $3.5 billion, which generated $1.2 billion for California public schools. This amounts to only 1.5% of all education spending in the State of California.

Of each dollar you spend on the Lottery, 53.9 cents goes back out in prizes to the winners. 34.6 cents goes to education, 7 cents goes to the retailer who sold the ticket, and 4.5 cents goes to the administration of the Lottery.

In the end, the Lottery was never intended to fully fund California’s schools. It has met its commitment to voters by being an additional, but not major, source of funds.

The Lottery has all of this information on its website, which you can access by going to:
http://www.calottery.com/default.htm

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Notice To Seniors - Medicare Part D

Once again, senior citizens can enroll or change their prescription drug plans under the federal program Medicare – Part D.

The California Department of Aging has extensive information and advice for senior citizens on how to make choices under this program. This program is very confusing to many of our seniors, and they can view the resources the Department of Aging has at:
http://www.aging.ca.gov/html/programs/medicare_consumers/medicare_consumers.html

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Holiday Greetings

I wish to extend our very best wishes of the Holiday Season from the Dave Cox family and staff too all of the readers of the Dave Cox Senate Report and to all constituents in the First Senate District.

May the spirit of this season extend into a happy and prosperous New Year.

Thank you for your continued interest in our newsletter and please continue to give us your comments on state issues throughout the year.

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Quotes Of The Week

“A lovely thing about Christmas is that it's compulsory, like a thunderstorm, and we all go through it together.”
- Garrison Keillor

“ Reflect on your present blessings, of which every man has many; not on your past misfortunes, of which all men have some.”
- Charles Dickens

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