Imperial Valley Press

Warren State's Insurance Bill Introduction Friday
SACRAMENTO. Cal. Jan. 15. (UP)—Gov. Earl Warren's compulsory health insurance program, slated for introduction in the legislature Friday, will provide medical service for California workers beginning in 1947 and will be financed by a 3 per cent payroll tax.

Warren said that under the bill as now drafted, payroll deductions will begin sometime in 1946 with benefits available the following year.

Half the tax will be paid by employers and the other half by employees.

Insisting that the traditional American relationship of doctor to patient would be maintained under his plan, Warren went on to explain that it would be based on the "fee system" of doctor participation.

Payroll deductions would be made on annual earnings above $4000, Warren said. because otherwise "an inordinate amount" would be contributed by some individuals. A ceiling on the amount which could be paid in any individual case will be specified in the bill in order to preclude depletion of the fund set up to administer the plan.

All persons now covered by unemployment insurance will be blanketed into the health plan. Voluntary participation will be made available to agricultural workers and self-employed persons, the latter paying the full three per cent tax.

Medical care systems now operated by private firms also will be given an opportunity to come in under the system.

Warren said that his budget message will not include an appropriation to set up the system since the legislation must be enacted first.

He said he had been informed that an alternative bill may be introduced, calling for a "capitation" system of assigning a given number of patients to a doctor who would then be responsible for their health.

Warren pointed out that this plan would militate against men who practice in specialized fields, such as dentists.

The governor's bill will be sponsored in the senate by Senator Byrl R. Salsman (R.) Palo Alto, and in the assembly by Albert C. Wollenberg (R.) San Francisco.