Proposition 216

Health Care. Consumer Protection. Taxes on Corporate Restructuring.

Initiative Statute.

Summary: Prohibits health care business from: discouraging health care professionals from informing patients or advocating for treatment; offering incentives for withholding care; refusing services recommended by physician or nurse without examination by business' own professional; conditioning coverage on arbitration agreement; increasing charges without filing required statement. Requires health care businesses to: make tax returns public; establish written criteria for denying payments which are determined by licensed health professionals. Assesses taxes for certain downsizings, mergers, and conversions to for-profit status. Establishes non-profit corporation to advocate for health care consumers. Authorizes public and private enforcement actions.

Fiscal Impact: New tax revenues, potentially hundreds of millions of dollars annually, to fund specified health care services. Additional state and local government costs for existing health programs and benefits, probably tens to hundreds of millions of dollars annually.

A YES vote on this measure means: New taxes would be imposed on health care businesses to fund specified health care services. Physical examinations would be required before health plans or insurers could deny recommended care. State staffing standards would be set for all health facilities, taking the needs of individual patients into accounts. Health care businesses could not offer financial incentives to doctors and others to reduce care. Certain health care employees and contractors would have additional protections.

A NO vote on this measure means: New taxes would not be imposed on health care businesses to finance health care services. There would be no requirement regarding physical examinations prior to denial of recommended care. There would not be any change to current state and federal laws regarding health facility staffing, health care employee and contractor protections, and restrictions on financial incentives to reduce care.

The State Ballot Pamphlet, published by the Secretary of State, features the text, fiscal analysis, and pro/con arguments.

Official Contact Information

Proponents: Rose Ann Demoro
(415) 864-4141, Ext. 530

Harvey Rosenfield
(310) 392-0522

Contact in Support: Harvey Rosenfield
Consumers and Nurses for Patient Protection
1750 Ocean Park #200
Santa Monica, CA 90405
(310) 392-0522
network@primenet.com

Contact in Opposition: Taxpayers Against Higher Health Care Costs
Stop the Hidden Health Care Tax
1950 L Street, Suite C240
Sacramento, CA 95814
(916) 552-7526
(800) 996-6287
Fax: (916) 552-7523

Related Web Sites

Support: California Nurses Association

Consumers and Nurses for Patient Protection

Opposition: Taxpayers Against Higher Health Care Costs
Stop the Hidden Health Care Tax

Neutral: None available to date.

This initiative was placed on the ballot through petition of the voters.
Source information for this material is available.
Web site additions and corrections can be made by email.

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