Schwarzenegger vows to make health care policy a top priority

In a proposal to make health insurance universal in the state of California, its Governor, Arnold Schwarzenegger unveiled a new health care plan under which full cover will be provided to all 36 million Californian residents.

According to official stats, a total of 6.5 million people, counting to one-fifth of the state’s population, are not covered under any health insurance plan. Of these, about a million are illegal immigrants into the country.

Unveiling his health care plan via satellite to business and health care professionals in Sacramento on Monday, Schwarzenegger said "My solution is that everyone in California must have insurance. If you can't afford it, the state will help you buy it, but you must be insured."

As per the conditions of the new plan, California citizens will not be denied coverage based or age or pre-existing health conditions.

As per proposed plan, firms with 10 or more workers are required to offer health insurance to employees or pay 4 percent of payroll to the state so that it can provide medical coverage. However, firms with less than 10 employees are exempted from the deal.

Doctors will be required to pay the state 2 percent of revenues and hospitals would be taxed 4 percent of their revenue to support a new state insurance pool. The plan is estimated to cost $12 billion.

Under the plan, the insurance cover will be extended to adults who earn as much as 100 percent above the federal poverty line and to children, regardless of their immigration status.

Adult illegal immigrants would continue to be barred from Medicaid benefits but would still be entitled to health services from their countries and the state’s hospital system.

Schwarzenegger's health insurance proposal is his first initiative since being sworn in for a second term last week.

His attempt would make California the fourth and by far the largest state to attempt near universal health coverage for its citizens.