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 don’t 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 governor’s 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."