Governor Schwarzenegger will start his second term with California health reform as his top priority. Hopefully, the Governor will take a fresh turn towards universal choice in health care, which requires breaking free from the inflexible and expensive status quo but does not impose more government power. So far, his policy approach remains unclear.
Last year, the Governor rightly vetoed Senator Sheila Kuehl’s SB-840, which would have imposed government monopoly health care in California. However, he also collaborated with the Democratic legislative majority to introduce a plan for state control over prescription drug prices for uninsured Californians – a plan likely in violation of federal Medicaid laws. According to the plan, Medi-Cal will no longer supply patients with medicines from drug companies that don’t sell to the uninsured at government-imposed discounts. Unfortunately, Governor Schwarzenegger ignored PRI’s proposal to create incentives for drug makers to reduce prices voluntarily, at little or no cost to taxpayers.