HEALTH INSURANCE

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SB 2 Retrospective

In November 2004, the California Health Insurance Act of 2003 (SB 2) was struck down when voters rejected Proposition 72. The legislation was a "pay or play" measure that would have required California employers to pay a fee to the state to provide health insurance unless the employer provided coverage directly, in which case the fee would have been waived. CHCF provided several reports and a cost estimator for policymakers and employers to help them gauge the impact of this legislation. The resources listed below are still relevant to a coverage expansion discussion.

Reports and Analyses

• The Health Insurance Act of 2003: An Overview of SB 2
• State Employer Health Insurance Mandates: A Brief History
• SB 2: Effects on Employers and Employees
• Framework Analysis of SB 2
• Challenges and Alternatives for Pay or Play Program Design
• ERISA Implications for SB 2
• California Constitutional Barriers to Implementation of SB 2

External Resources

• California Legislative Information on SB 2
• California Legislative Analyst Review of Prop 72
• Field Poll Public Opinion Surveys on SB 2 and Prop 72 (see numbers 2147, 2140, 2127, and 2104)
• Health Affairs Analyzes Employers' Responses to SB 2
• Insure the Uninsured Project SB 2 Letter (PDF)
• Kaiser Family Foundation SB 2 Data Update
• UCLA Center for Health Policy Research Study of SB 2

Tools

• SB 2 Cost Estimator
  CHCF developed an online tool designed to help firms estimate the cost of providing health insurance under the "play" option of SB 2.

By the Numbers

Top Three Contributors
For Proposition 72

1. CA State Council of Service Employees Issues Committee ($3,131,879)
2. CA Teachers Association Issues PAC ($1,057,696)
3. United Food and Commercial Workers International Union ($1,030,000)

Total contributions as of 11/07/04: $14,784,755

Top Three Contributors
Against Proposition 72

1. California Restaurant Association ($5,042,000)
2. WAL*MART Stores, Inc. ($648,449)
3. McDonald's Corporation ($471,250)

Total Contributions as of 11/07/04: $18,386,267