Press Release - Angelides Unveils Major Proposal To Crack Down On HMOs, Cut Health Care Costs For Consumers By $4 Billion
Press Release - Angelides Unveils Major Proposal To Crack Down On HMOs, Cut Health Care Costs For Consumers By $4 Billion
LOS ANGELES - California State Treasurer and Democratic nominee for Governor Phil Angelides today unveiled a plan to put state government back on the side of middle class families and businesses by prohibiting HMOs from spending more than 10 percent of health care premiums on wasteful and excessive HMO overhead, executive payouts, and profits. The plan would cut health care costs for families, businesses, and government agencies by $4 billion and save more than 12 million Californians an average of about $300 a year.
"I'm running for Governor for a single, simple, fundamental reason: to put an end to the Bush-Schwarzenegger policies that favor the special interests over this state's interests," said Angelides. "The rising cost of health care - of the simple ability to keep your children and yourself healthy and strong - may be the most glaring injustice of the Bush-Schwarzenegger era."
Unlike Governor Schwarzenegger, Treasurer Angelides pledged to stand up to the HMOs, crack down on their wasteful overhead costs, and pass on the savings to individuals, businesses, and governmental entities that are currently saddled with high premiums. The Angelides plan will:
* Require that no health plan divert more than 10 percent of premiums--one dime on every dollar--to overhead and profit by enforcing and strengthening existing law (the Knox-Keene Act) that prohibits "excessive" HMO administrative costs.
* Save an estimated 12.6 million Californians about $4 billion a year in health insurance premiums--an average of over $300 per enrollee. A family of four would see annual savings of over $1,200, and a business that pays 80% of the premiums for its employees would save $12,000 each year for every 50 enrollees that it covers.
* Make health coverage more affordable and open the door for more families to afford health insurance and for more businesses to provide health benefits to their employees.
"As Governor, I will expand health coverage step-by-step," said Angelides. "I will start by ensuring that all children in the State of California can see a doctor when they're sick. And I will not rest until every Californian is covered."
http://www.angelides.com/news/pressreleases/2006_0920_hmo.html