California business groups that oppose the state's new mandatory health-insurance
law will proceed with their plan to overturn the legislation with a referendum,
the Associated Press reports.For a Limited Time receive a
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Download NowIn order for the effort to appear on the March ballot for voters, the groups
need to collect the valid signatures of at least 373,816 registered voters by
January 4, 2004, according to the news agency. Departing Governor Gray Davis
signed the bill just days before the recall election in the state.
The business groups contend that the legislation would hurt jobs in the state.
"Businesses are already cutting jobs or moving out of state because of
the high costs in California," says Allan Zaremberg, president of the California
Chamber of Commerce.
Under the legislation, employers with 200 or more employees would be required
to offer healthcare insurance to workers and their families by 2006, with employers
paying 80 percent of the premium and workers covering the remaining 20 percent.
Smaller companies with more than 20 employees would have until 2007 to offer
the coverage. Those with more than 20 workers but fewer than 49 would only have
to provide health insurance if the legislature also passed a 20 percent tax
credit for those firms.
Employers who'd be required to provide coverage would have the option of providing
the insurance themselves or paying a fee to a state fund that would obtain the
coverage
Davis contends the legislation is important to ensure more workers receive
health benefits, saying it would cover 1 million Californians, the AP reports.
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