72 Health Care Coverage
Referendum

Employers in California can choose whether they want to provide health care coverage for their employees and their dependents. In 2003, a law was passed by the State Legislature to expand health care coverage for workers at large and medium-sized employers. This law has not gone into effect yet. Prop 72 is a referendum, which means the voters have to approve this law, not just the State Legislature.
 

Require large and medium-sized employers in California to either provide health care coverage or pay into a state program to purchase health coverage. Employers of 200 or more would have to start in 2006. Employers with 50 up to 200 employees would start in 2007.

Employees would pay no more than 20% of their health plan premium. Low-income employees would have their contribution limited to 5% of wages. The measure would help employees who are eligible for Medi-Cal and Healthy Families pay their premiums and receive additional medical services.
 

The total effect on the state budget is hard to predict. Costs for the state program for purchasing health coverage would be covered by fees from employers. The state may lose tax income from companies whose profits are lowered by health care payments. County health program costs could go down by hundreds of millions of dollars.
 

Arguments for Prop 72:		Arguments against Prop 72:
At least one million more Californians from working families will get health care coverage they can afford. Prop 72 levels the playing field by requiring all large and medium-sized companies to pay for health care so some don’t have an unfair advantage. website		Employees could get forced out of their current health plans into a program chosen by the government. Many employers will have to cut jobs or services to pay this new health care tax. Prop 72 affects businesses, public agencies and nonprofits. website