The report examines two proposals in California aimed at expanding health care coverage: the Governor's Health Care Proposal and Assembly Bill 8. Both proposals would require employers to spend a minimum percentage of their payroll on employees' health care or pay an enrollment fee to the state. The report notes that job-based health coverage for Californians under the age of 65 fell by 5 percent between 2001 and 2006, while the cost of health premiums doubled, while workers' nominal earnings increased cumulatively by 12 percent. The report estimates that 3.4 million individuals would gain coverage under AB 8 and 4.1 million under the Governor's Health Care Proposal. The report also notes that California firms currently contribute an average of 7.9 percent of total payroll to employee health care and 11.2 percent of payroll of workers with health coverage through their employer.
