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Governor Guarantees Comprehensive Healthcare Reform This Year

Governor Arnold Schwarzenegger says he guarantees California lawmakers will pass comprehensive healthcare reform this year. But some say the governor may not get everything he wants. KPBS reporter Ken

Governor Guarantees Comprehensive Healthcare Reform This Year

Governor Arnold Schwarzenegger says he guarantees California lawmakers will pass comprehensive healthcare reform this year. But some say the governor may not get everything he wants. KPBS reporter Kenny Goldberg has more.

The governor says his plan will become a model for rest of the nation. 

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He wants to require all Californians to have insurance. The governor says insurers won't raise rates, because his plan caps administrative costs and profits at 15 percent of premiums.

Jerry Flanagan is with the Foundation for Taxpayer and Consumer Rights. He argues a cap won't limit premium hikes.

Flanagan : And in fact, what it does, is encourage the insurers to raise premiums, so that 15 percent of their gross revenues will be a larger number.

Democratic lawmakers are pushing their own healthcare reform packages that don't include a requirement to buy insurance. The governor says he’s confident the two sides can work out a deal.

Kenny Goldberg, KPBS News.