Newsletter of the Insurance Law Practice Group: California Legislative Report 2007 Session

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The 2007 Legislative Session was intended, by all parties, to be the year of ?Healthcare Reform.? While there was agreement on the goal of creating a healthcare system to address the approximately 6.5 million uninsured in the state of California, there was very little agreement on how to accomplish that goal. As a result, the majority of insurance legislation introduced was health-related. Governor Schwarzenegger started the effort with a call for a mandate on all Californians to have health insurance, which was quickly answered by a universal health care plan sponsored by the California Nurses Association. After being unable to come up with a proposal during the Regular Legislative Session, Governor Schwarzenegger called a special session to address the issue and in the final days of the Extraordinary Session on Healthcare, the Governor reached a deal with Assembly Speaker Fabian Nunez. However, an expected $14 billion budget deficit resulted in Senate President Don Perata deferring a vote on the agreement. Senator Perata felt a vote would not be fiscally prudent. As a result, the year of Healthcare Reform came and went without final action. Senator Perata has recently stated that the Senate Health Committee will vote on the measure on January 16.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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