Historic Health Care Reform Law will benefit California

The full text of the letter follows:

March 26, 2010

The Honorable Arnold Schwarzenegger

Governor of California
State Capitol Building
Sacramento, CA 95814

Dear Governor Schwarzenegger:

We are writing to explain the benefits of the new health reform legislation for California.

Your Secretary of Health and Human Services estimated this week that the legislation would cost California $2 billion to $3 billion annually.  This is an incomplete and misleading assessment because it fails to take into account billions of dollars worth of new federal tax and health care benefits that will go to California's families and small businesses.

We have enclosed an analysis of the many benefits that the health reform law will bring to California and its residents.  Over the next ten years, Californians will receive $124 billion in new federal support for health care coverage.

These new benefits include $106 billion in tax credits and other federal funding to pay for health care coverage for California families, $4.3 billion in tax credits to small businesses that purchase health insurance for their employees, and $9.3 billion in federal assistance to California seniors in the Part D drug donut hole.  The legislation will also extend health care coverage to 3.8 million uninsured California residents and improve coverage for 21 million residents with employer-based or individual health insurance.

We hope this information is helpful to you as you evaluate the health care reform legislation and its many benefits to the state and California families.

Sincerely,

Related Documents: 

Fact Sheet: The Benefits of Health Care Reform in California (March 2010).