I was surprised, and frankly pleased, to read that Republican Governor Schwarzenegger has proposed a plan to provide universal health coverage in California. While other Republicans and business leaders are expected to oppose the plan (which calls for a tax on businesses with more than 10 employees that don't provide health insurance to their employees), I think this will quickly become a competitive advantage for the country's largest state (in economic terms).
If you knew that no matter where you worked in California, you'd get health insurance, wouldn't that influence your decision to move there. At the margins, this will make California even more of an economic competitor to other states in the region--and around the country--when trying to attract a quality work force.
Personally, I think that Utah should quickly consider a similar policy. As a small business owner that provides health insurance, I believe that this is just good business practice. Providing an affordable (and mandatory) health plan to small business could be a good thing.
The Schwarzenegger plan would also benefit venture-backed companies because the plan taxes payroll less than the cost most employers are now paying for health insurance in order to pay for the cost of the universal coverage. This means that the state will be subsidizing health insurance in venture-backed businesses. I think other states in the region need to be thinking about this issue soon in order to compete in economic development in the coming years.
I'm guessing that my view on this is not universally held. What do you think about this issue?
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» Republican Governor Proposes Universal Coverage in California from
An examination of how universal health care could benefit California beyond just making sure everyone has access to health care. [Read More]
Tracked on: January 11, 2007 2:01 PM | Permalink to Trackback