Enhanced Tax Credit with an Individual Mandate

• Broadly expands coverage—all California legal residents would be required to have health coverage.

• Generous tax credit can be used for individual or employer-sponsored coverage.

• Greatly improves portability of care because coverage can be continuous.

• Involves substantially higher cost of newly consumed medical resources because most people would be covered.

• Relatively high budgetary cost because subsidies are given to many people already privately covered.

• May be difficult to sustain because no new cost controls are included.

• Moderately difficult to implement.

• Provides equal financial assistance to people with equal needs.

• Subsidies graduated by income and family size.

• Promotes broad sharing of risks.

• May broaden choice of plans and providers.

• Little effect on provider autonomy.

• Substantial government intervention and regulation.