As promised, California Governor Arnold Schwarzenegger vetoed the health care reform proposal passed in the Democrat-controlled State Assembly. The Democrats’ proposal would have provided health insurance for roughly four million uninsured California residents. The bill would not have covered all residents — there are around 6.5 million in the state without coverage.
To fund the state-sponsored insurance program, employers would have been required to use up to 7.5% of their payrolls to provide coverage for their employees, or pay into a state pool.
Governor Schwarzenegger vetoed the bill because it did not mandate health insurance in the state. He also was opposed to employers and businesses paying into the program, according to the Los Angeles Times.
“This bill does not achieve coverage for all — a critical step needed to reduce health care costs for everyone. [The bill] places an unreasonable financial burden on businesses, ” said the California Governor.
He also said all the state legislators would have to go back to the negotiation table and find some middle ground.