"Economic Choices 2008" -The Golden State May Be The Golden Ticket To The White House
Wednesday, January 30, 2008PAUL KANGAS: Democrat John Edwards and Republican Rudy Giuliani dropped out of the race for the White House today. That sets up next week's super Tuesday primaries to select the likely nominee for both parties. The richest delegate prize is California, a state that for years has tried and failed to reform its health care system. In tonight's "Economic Choices '08" coverage, Darren Gersh examines how a health care crisis in the golden state will influence the election. DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: The Venice family clinic serves some of the richest zip codes in Los Angeles. From Santa Monica to Beverly Hills, this clinic offers free care to 57,000 low- income people who have no health insurance. And that's just a small fraction of LA County's two million uninsured. Clinic CEO Elizabeth Forer says most people don't understand the magnitude of the health care crisis in California.
ELIZABETH FORER, CEO, VENICE FAMILY CLINIC: The health care system in LA has limped along like this now for 12 years in a state of ongoing crisis and flux, losing limbs as we go along with different hospitals dropping out, different closures. I'm not sure at what point we just completely destabilize.
GERSH: There are 6.5 million uninsured people in the state of California, almost a third of them in Los Angeles County alone. With emergency rooms closing and costs rising, the voters here know the health care system is in trouble and they want the presidential candidates to be ready with detailed solutions.
Health care made headlines here this week after the state senate's health committee voted down a sweeping reform bill pushed by Governor Arnold Schwarzenegger. In a state facing a $14 billion deficit, lawmakers feared the plan would cost too much. Some consumer groups worried Californians would have been required to buy health insurance that was too expensive. Richard Brown studies health care policy at UCLA and is an advisor to Senator Barack Obama. He says the high-profile political failure of the governor's plan will elevate the debate over health care reform in California's presidential primary next week.
RICHARD BROWN, UCLA: It is really clear that it is going to take Federal leadership, the leadership of the president and support of the Congress, to enact a framework for health care reform, even if it's done through the state level.
GERSH: Many small business owners are relieved the governor's plan collapsed. At Maria's Italian Kitchen, owner Madelyn Alfano says the plan was unfair, because it placed most of the burden on employers. Alfano says she supports health care reform, but now she worries the presidential candidates haven't carefully weighed the economic impact of their plans.
MADELYN ALFANO, OWNER, MARIA'S ITALIAN KITCHEN: I don't know if all of the candidates are thinking through the policies and how it's going to affect the greater good.
GERSH: Alfano thinks health care reform of some kind is inevitable. That's one reason she's planning to develop an express version of her restaurant, one that requires fewer workers and lowers benefit costs.
ALFANO: That's the only way we'll be profitable.
GERSH: While the governor's plan has been defeated, Elizabeth Forer believes the pressure for change has increased.
FORER: Health care is huge and when the economy turns south, more and more people are uninsured so it becomes a major issue here for our primaries. And I think folks, especially in LA County, are very aware of it.
GERSH: Advertising entrepreneur Renee Fraser certainly noticed after her health care costs jumped 80 percent in three years.
RENEE FRASER, CEO, FRASER COMMUNICATIONS: Every time it comes around it is up again and nothing has really changed with our employees. It is not as if we have been utilizing the insurance. It seems totally out of control and out of our hands.
GERSH: Fraser says Californians know what the health care issues are and will be asking tough questions. She wants to know whether the savings Republicans and Democrats are promising will really offset the costs of increased coverage.
FRASER: So there is some cost reduction building into the system, but we all know that takes a lot of time. And in the short-term, how are we going to be certain that costs are reasonable and that they are paid for in a fair manner by everyone?
GERSH: California tried and failed to answer those questions this week. Now it's up to the presidential candidates. Darren Gersh, NIGHTLY BUSINESS REPORT, Los Angeles.
