Gov. Arnold Schwarzenegger on Thursday signed seven major health care-reform bills, including legislation establishing a Web-based insurance exchange that will allow consumers to comparison-shop for coverage.
The governor's action makes California the first state to implement an oversight board for insurance exchange marketplaces since the new federal health care law was enacted earlier this year. Massachusetts implemented its exchange prior to reform.
"For national reform to succeed, it will be up to the states to make it work, and California is moving forward on reforms that will provide affordable and quality health care insurance," Schwarzenegger said in a statement.
The two companion bills, SB900 and AB1602, will promote competition in the health insurance marketplace that will make plans more affordable, particularly for individuals and small businesses, said Assembly Speaker John Perez, D-Los Angeles, the author of AB1602.
Additional bills signed Thursday prohibit insurers from denying coverage to children because of a pre-existing condition and allow young adults to stay on their parents' health care plans until age 26.
The legislation aims to bring the nation's most populous state in line with federal reforms scheduled to take effect in 2014.
"This will really give us a leg up and put us in a leadership role in the nation," said Betsy Imholz, health advocate for Consumers Union, a major supporter of the reform package. "It's a big job for California to set this up and do it right, and now we can take the time to set up a really model exchange that other states can look to."
When fully enacted, federal law will require most Americans to carry insurance. More than 46 million Americans are currently uninsured, including more than 6.7 million Californians, according to the Henry J. Kaiser Family Foundation.
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