The California State Compensation Insurance Fund could expand to include group health coverage among its offerings under legislation introduced in both the State Senate and Assembly.
Assemblywoman Fiona Ma, D-San Francisco, introduced AB 550 late last month, with Sen. Leland Yee, D-San Francisco, following suit in the Senate with the introduction of SB 723. Under the proposed legislation SCIF would be allowed to offer group health coverage just as any other insurer can.
Nick Hardeman, a spokesman for Assemblywoman Ma, said the bill was introduced to serve as a framework for the issue as lawmakers look at reforming the state's health insurance system.
"We know this is probably not going to be the ultimate language of the bill," he said, adding that Assemblywoman Ma wanted to introduce the bill as a "discussion point" as the debate over requiring health coverage continues.
One of the proposals being floated in Sacramento, most notably by Gov. Arnold Schwarzenegger, is to require health coverage for all citizens with state assistance to help purchase it for those with lower incomes.
As the debate on health insurance reform goes forward, Mr. Hardeman said Assemblywoman Ma wanted to ensure that Californians would have access to affordable care beyond the private market.
"If there's going to be mandatory insurance coverage, we felt we had to have some sort of state-authorized nonprofit entity to provide coverage," he said.
Mr. Hardeman said the issue of coverage is similar to what occurred when workers' comp itself was made mandatory in the early 1900s. Employers then argued that if they were required to have coverage, then they should have someplace in addition to the private market to turn to, he said.
Mr. Hardeman said there have been "interest calls" regarding the bill, but that Assemblywoman Ma's office has not seen any specific criticism or support from the other side of the aisle.
Both the Assembly and Senate bills are awaiting committee action.
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