Health Insurance Emerges as Legislature’s Dominant Issue

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As business lobbyists pore over 3,000-plus bills introduced by the Democrat-dominated state Legislature last month, their biggest concern is with the 200 or so health care proposals.


Two dozen of the bills involve additional mandates on employers or insurers expanded coverage for pregnancy-related services, for instance, or drug treatment programs.


“The focus this year seems to be on driving down health care costs so that more people can get covered,” said Martyn Hopper, director of the California chapter of the National Federation of Independent Business.


But Democrats also have come forward with proposals to lower the cost of health care, including tax deductions for employers who begin offering health care or expand their health coverage.


The federation is pushing for legislation to allow small employers to pool together to seek health care insurance.


“So much of the working population is uninsured now that we have to come up with something,” he said.


Outside of health care, business groups are monitoring proposals to increase the minimum wage. Assemblywoman Sally Lieber, D-Mountain View carried a minimum wage hike last year and she’s back with another bill, though the exact amount of the proposed hike is undetermined.


Business lobbyists, meanwhile, are pushing for an overhaul of the state’s daily overtime law. Several proposals are on the table, including one from newly elected Assemblyman Van Tran, R-Costa Mesa. It would allow hourly employees to work out a four-day workweek schedule with their employers.


“This will be a big fight we expect a lot of labor opposition,” said Julie Broyles, director of employee relations and small business for the California Chamber of Commerce.


Also on the table is cleanup legislation after last year’s massive restructuring of workers’ compensation. Labor unions and lawyers have their own proposals to roll back those same reforms.


Looming over all this is the fight between Gov. Arnold Schwarzenegger and the Democrats over government reform. Much of this battle may ultimately be fought out at the ballot box, but it could still have an effect on the legislative session, making it harder for each side to compromise.


“Everybody’s positioning themselves on where we go with the special election,” Hopper said. “Redistricting and term limits especially have changed the dynamic this year.”


Business groups, especially the California Chamber of Commerce, are largely supportive of the proposals on redistricting, pension reform and spending limits that Schwarzenegger has put forth.


But they are also mobilizing to fight what they expect will be several anti-business measures on the same ballot. Last week, the chamber, the California Business Roundtable and other pro-business groups banded together to form Californians to Stop Higher Taxes.



Yaroslavsky Skeptical


L.A. County Supervisor Zev Yaroslavsky is pessimistic about chances to put a half-cent sales tax for new public safety officers up again for a countywide vote. He also voiced skepticism on the prospect of building more subways or rail lines in Los Angeles, saying dedicated bus lines are cheaper.


Speaking to the Current Affairs Forum last week, Yaroslavsky said he doubted the public would ever give two-thirds support for a sales tax hike for public safety.


“I don’t think we’ll ever top the 60 percent we got last November, which was the highest-turnout election in nearly 30 years,” he said, noting that high turnout generally brings more support for tax hikes.


Meanwhile, as the Los Angeles Metropolitan Transportation Authority considers reviving plans for a subway along Wilshire Boulevard, Yaroslavsky said that once the Orange Line dedicated busway opens in the San Fernando Valley later this year, the public will immediately endorse it.


“People all over L.A. will be clamoring for busways like the Orange Line,” Yaroslavsky said. “They’ll realize it’s much cheaper and does just as effective a job at moving people as rail.”



New Lobbyists


Two longtime local government employees have joined GCG Rose & Kindel, the new lobbying and public affairs firm formed when Global Consulting Group acquired Rose & Kindel in December.


Kristen Montet, former chief planning deputy for Councilwoman Cindy Miscikowski, and Ad & #225;n Ortega, former vice president of external affairs for the Metropolitan Water District of Southern California, joined the firm last month.


Montet, who left Miscikowski’s office two years ago to become chief of staff to a facilities executive with the Los Angeles Unified School District, will lead GCG Rose & Kindel’s planning and land use practice. Ortega will be an independent subcontractor affiliated with GCG Rose & Kindel. Both will work out of the firm’s Los Angeles office.


Staff reporter Howard Fine can be reached by phone at (323) 549-5225, ext. 227, or by e-mail at

[email protected]

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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