Arnold's Health Plan Terminated

State Senate kills governor's 'fairy tale' universal insurance reform
By Peter Fearon,  Newser Staff
Posted Jan 29, 2008 3:40 AM CST
California Gov. Arnold Schwarzenegger takes a picture with a camera provided by Alice Loh, left, of San Luis Opisbo, Calif., following his appearance at an AARP rally at the Capitol in Sacramento, Calif.,...   (Associated Press)
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(Newser) – Gov. Arnold Schwarzenegger's ambitious plans for a near-universal health care insurance system in California have been terminated after a year-long effort to win the support of lawmakers. The proposal was overwhelmingly rejected by California's Senate Health Committee, with only 1 of 11 senators voting in favor of the plan, reports the Los Angeles Times. Senators blasted the proposal, which was passed last month by the state Assembly, as "fairy tale" reform.

Opponents said it was bound to fail because of its enormous cost—some $14.9 billion at a time when Californians are staggering under a budget gap of $14.5 billion. The Schwarzenegger proposal, which was regarded as a possible model for other states, would have required all Californians to obtain health insurance and would have subsidized premiums for those who couldn't afford to pay.