On Wednesday Small Business California and I were honored to receive the 2010 Distinguished Service award at the annual convention of the National Association of Government Guaranteed Lenders. The recognition was for our work in getting the Small Business Jobs bill passed.
Small Business California is proud to be a partner with NAGGL and they are also to be thanked for their efforts in getting the bill passed.
Small businesses around the country owe them a debt of gratitude for their tireless efforts on our behalf. A special thank you is extended to Tony Wilkinson the Executive Director of NAGGL and Tom Cator NAGGL’s lobbyist in Washington.
In previous emails I have mentioned that the SBA has not met its obligations required under the energy bills of 2005 and 2007.
See below what the bills required. Small Business California has requested Dr Winslow Sargeant the director of the Office of Advocacy to look into this matter. Small businesses around the country deserve better and we will continue to push for the SBA to obey the law.
EISA 2007
• Required the U.S. Small Business Administration (SBA) to implement a government-wide program, built on the ENERGY STAR Small Business program, to help small businesses (a) become more energy efficient, (b) understand the potential cost savings from improved energy efficiency, and (c) identify financing options for energy-efficiency upgrades.
EPACT 2005
• Required the U.S. Small Business Administration (SBA), in consultation with the DOE and EPA, to implement a government-wide program, built on the ENERGY STAR Small Business program, to help small businesses: (a) become more energy efficient, (b) understand the potential cost savings from improved energy efficiency, and (c) identify financing options for energy-efficiency upgrades;
• Required the DOE to convene an organizational conference for the purpose of establishing an ongoing, self-sustaining national public energy and energy-efficiency education program, examining the interrelationship between energy and its role in the economy and on the environment; and
• Required the SBA to establish a Small Business Energy Efficiency Program through select Small Business Development Centers (SBDC)—through this provision, an SBDC would have been eligible, consistent with State public utility regulations, to act as a “facilitator” for on-bill financing agreements between small businesses, electric utilities, lenders, and the Administration;
• Rendered plant projects that reduce the borrower’s energy consumption by at least 10 percent or that generate renewable energy or renewable fuels, such as ethanol, eligible for 504 loans and increased the maximum debenture to $4 million;
• Expanded the list of permissible uses for Express Loans to include renewable energy and energy efficiency improvements;
• Established a pilot program for reduced 7(a) fees for the purchase of energy-efficient technologies;
• Created a telecommuting pilot program at the SBA aimed at education and outreach;
• Created a priority status within the Small Business Innovation Research and Small Business Technology Transfer programs for small-business concerns participating in energy efficiency or renewable energy research and development projects; and
• Authorized Small Business Investment Companies to issue a new class of debentures, called Energy Saving debentures, for small businesses primarily engaged in the researching, manufacturing, developing, or providing products, goods, or services that reduce the use or consumption of non-renewable energy resources.
• Required the DOE to carry out a national public information program on energy efficiency focused on: (a) the need to reduce energy consumption, (b) the benefits of reduced consumption, (c) the benefits of lower energy costs to economic growth and job creation, and (d) ways to reduce consumption through increased efficiency.
EPACT 2005
• Mandated that the U.S. Department of Energy (DOE), in cooperation with the Environmental Protection Agency (EPA), create a consumer education program focused on the energy savings available from properly conducted maintenance of air conditioning, heating, and ventilating (HVAC) systems;
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2109
Friday, October 29, 2010
Tuesday, October 26, 2010
Small Business California
Yesterday I sent you the link to Small Business California press release requesting Dr Winslow Sargeant head of Office of Advocacy at the SBA to do research on what banks are doing as respects lending to small business.
I am pleased to tell you that Dr Sargaent called me yesterday and let me know that they were in the process of getting this done and it should be done in two to three weeks.
He said the report will be for 2009 and they will also be doing a report for 2010 early next year.
When the report is done I will send to you.
While I had Dr Sargaent on the phone I also requested that he look into why the SBA has not designated a person to meet the requirements required under the energy bills of 2007 and 2005.
These bills required the SBA to work with government agencies in developing energy policies that will help small business. One policy mentioned in the energy bill was assistance in developing On Bill Financing around the country which Small Business California has brought to California.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I am pleased to tell you that Dr Sargaent called me yesterday and let me know that they were in the process of getting this done and it should be done in two to three weeks.
He said the report will be for 2009 and they will also be doing a report for 2010 early next year.
When the report is done I will send to you.
While I had Dr Sargaent on the phone I also requested that he look into why the SBA has not designated a person to meet the requirements required under the energy bills of 2007 and 2005.
These bills required the SBA to work with government agencies in developing energy policies that will help small business. One policy mentioned in the energy bill was assistance in developing On Bill Financing around the country which Small Business California has brought to California.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, October 25, 2010
Small Business Press Release/ Clinic by the Bay
Small Business California issued a press release yesterday urging Dr. Winslow Sargeant the United States Small Business Association Chief of Advocacy to do a report on what Banks are doing with small businesses. Based on your responses there is a major problem with banks reducing and in some cases eliminating lines of credit, calling in loans, reducing credit card limits and increasing credit card interest.
There is a precedent for this in that Jere Glover while head of Advocacy under the Clinton Administration put forth a report which illustrated many of the problems at that time. This report is important because we have to have something that goes beyond anecdotal evidence.
Please see below link to press release.
http://www.businesswire.com/news/home/20101024005085/en
I have been invited to attend a conference on Tuesday and Wednesday that the National Association of Government Guaranteed Lenders is putting on in Anaheim. It is expected there will be over 600 in attendance.
On November 27th 1998 I was watching Chris Mathews Hardball. Chris had as his guest John Kasich who had written a book called Courage is Contagious. The book tells about 15 people who had done extraordinary things in their community.
One of the guests was Dr Jack McConnell who founded Volunteers In Medicine in Hilton Head. He told about an amazing free clinic he had established there taking volunteer retired Doctors, Nurses, Dentist and lay Volunteers who provided health services to the working uninsured. He also mentioned that they took no government money.
It was then my dream began to establish a Volunteer in Medicine program in SF.
On November 9 the Volunteer in Medicine Clinic called Clinic by the Bay will have its grand opening. Senator Dianne Feinstein we think will be attending as will Congresswoman Jackie Speier.
That evening Small Business California and Board members Stephen Cornell, Mark Klaiman and I will be hosting a fund raiser for the Clinic from 6 to 7:30 The cost is $1000 for host, $500 for co-host, $250 for sponsors and $100 for individuals.
For those of you in the SF area I hope you can attend. For those of you outside the area I hope you will consider making contribution. I will match any contribution you make. Please make checks payable to Clinic by the Bay and mail to me at address below or contribute on line by going to http://www.clinicbythebay.org/. If you contribute on line please let me know amount so I can match.
Our Credo
“May we have eyes to see those who are rendered invisible and excluded,
Open arms and hearts to reach out and include them,
Healing hands to touch their lives with love,
And in the process heal ourselves”
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
There is a precedent for this in that Jere Glover while head of Advocacy under the Clinton Administration put forth a report which illustrated many of the problems at that time. This report is important because we have to have something that goes beyond anecdotal evidence.
Please see below link to press release.
http://www.businesswire.com/news/home/20101024005085/en
I have been invited to attend a conference on Tuesday and Wednesday that the National Association of Government Guaranteed Lenders is putting on in Anaheim. It is expected there will be over 600 in attendance.
On November 27th 1998 I was watching Chris Mathews Hardball. Chris had as his guest John Kasich who had written a book called Courage is Contagious. The book tells about 15 people who had done extraordinary things in their community.
One of the guests was Dr Jack McConnell who founded Volunteers In Medicine in Hilton Head. He told about an amazing free clinic he had established there taking volunteer retired Doctors, Nurses, Dentist and lay Volunteers who provided health services to the working uninsured. He also mentioned that they took no government money.
It was then my dream began to establish a Volunteer in Medicine program in SF.
On November 9 the Volunteer in Medicine Clinic called Clinic by the Bay will have its grand opening. Senator Dianne Feinstein we think will be attending as will Congresswoman Jackie Speier.
That evening Small Business California and Board members Stephen Cornell, Mark Klaiman and I will be hosting a fund raiser for the Clinic from 6 to 7:30 The cost is $1000 for host, $500 for co-host, $250 for sponsors and $100 for individuals.
For those of you in the SF area I hope you can attend. For those of you outside the area I hope you will consider making contribution. I will match any contribution you make. Please make checks payable to Clinic by the Bay and mail to me at address below or contribute on line by going to http://www.clinicbythebay.org/. If you contribute on line please let me know amount so I can match.
Our Credo
“May we have eyes to see those who are rendered invisible and excluded,
Open arms and hearts to reach out and include them,
Healing hands to touch their lives with love,
And in the process heal ourselves”
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Wednesday, October 20, 2010
AB 1632 the Small Business Bill is signed by the Governor- Letter To Advocate for Research on Bank Lending
In previous emails I said that a trailer bill was part of the budget package. I indicated that it needed to be signed by the Governor.
See email from Toni Symonds indicating the Governor has signed the bill. Besides providing lending for almost $250 million it will provide $6 million for SBDCs. Tony worked hard on this bill and I think you should take a few seconds and send an email and thank Tony and the JEDE Committee members.
SB Cal will have a representative at the Oct 26 meeting.
-------------------------------------
Dear JEDE Friends:
According to the Governor's legislative staff, the Governor has signed AB 1632 the Small Business Act that includes $33 million for small business finance and technical assistance. We don't have a chapter number yet, but JEDE was emailed that the bill was signed.
All Members of the JEDE Committee voted in support of this bill. As you may recall, this bill was a recommendation from the Speaker's Economic Recovery and Jobs Task Force that was lead by Assemblymen V. Manuel Perez and Mike Feuer. In developing the recommendation, the Task Force met with small business leaders, the SBA and the Treasurer's Office. JEDE's work on business issues was also used as a foundation to the discussions and recommendations. The Speaker, in considering the recommendations from the Task Force convened a Small Business Roundtable in August 2010.
It is expect this $33 million will leverage millions of federal dollars and assistance for our small businesses. Attached is more information about the programs funded in the bill.
Thank you for all your efforts. See you on October 26, 2010 to discuss implementation.
Toni and Mercedes
Toni E. Symonds
Chief Consultant
California State Assembly Committee on Jobs,
Economic Development, and the Economy
California State Capitol
Sacramento, California 95814
(916) 319-2090
toni.symonds@asm.ca.gov
---------------------------------------
Yesterday I sent a letter to Winslow Sargeant SBA Office of Advocacy along with 15 sample emails from you of the problems you are having with banks. I wrote supporting the SBA Office of the Advocate do research on what banks are doing to small businesses. We need this so we will not be talking anecdotally. The study would be similar to what Jere Glover a past Advocate did a number of years ago.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
See email from Toni Symonds indicating the Governor has signed the bill. Besides providing lending for almost $250 million it will provide $6 million for SBDCs. Tony worked hard on this bill and I think you should take a few seconds and send an email and thank Tony and the JEDE Committee members.
SB Cal will have a representative at the Oct 26 meeting.
-------------------------------------
Dear JEDE Friends:
According to the Governor's legislative staff, the Governor has signed AB 1632 the Small Business Act that includes $33 million for small business finance and technical assistance. We don't have a chapter number yet, but JEDE was emailed that the bill was signed.
All Members of the JEDE Committee voted in support of this bill. As you may recall, this bill was a recommendation from the Speaker's Economic Recovery and Jobs Task Force that was lead by Assemblymen V. Manuel Perez and Mike Feuer. In developing the recommendation, the Task Force met with small business leaders, the SBA and the Treasurer's Office. JEDE's work on business issues was also used as a foundation to the discussions and recommendations. The Speaker, in considering the recommendations from the Task Force convened a Small Business Roundtable in August 2010.
It is expect this $33 million will leverage millions of federal dollars and assistance for our small businesses. Attached is more information about the programs funded in the bill.
Thank you for all your efforts. See you on October 26, 2010 to discuss implementation.
Toni and Mercedes
Toni E. Symonds
Chief Consultant
California State Assembly Committee on Jobs,
Economic Development, and the Economy
California State Capitol
Sacramento, California 95814
(916) 319-2090
toni.symonds@asm.ca.gov
---------------------------------------
Yesterday I sent a letter to Winslow Sargeant SBA Office of Advocacy along with 15 sample emails from you of the problems you are having with banks. I wrote supporting the SBA Office of the Advocate do research on what banks are doing to small businesses. We need this so we will not be talking anecdotally. The study would be similar to what Jere Glover a past Advocate did a number of years ago.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Tuesday, October 19, 2010
Emails About Big Banks
I have really been blown away by the responses I have received to my emails about big banks in general and Bank of America specifically.
In the last two days I have received well over 100 emails. The horror stories of banks pulling lines of credit, calling in loans, 30% interest on credit cards and banks cashing larger checks so they can increase the amount of fees they can charge on smaller checks are just a few of the things you have told me.
I welcome further comments including those of you that are being treated well by your bank.
The reason for this email is however to let you know that Small Business California is going to be sending a letter today to the SBA Office of Advocacy supporting their doing research into the actions of banks and their treatment of small businesses. Jere Glover the Advocate under the Clinton administration did this and it had an impact in the way banks dealt with their small business customers.
I will cite examples that you have provided me.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
In the last two days I have received well over 100 emails. The horror stories of banks pulling lines of credit, calling in loans, 30% interest on credit cards and banks cashing larger checks so they can increase the amount of fees they can charge on smaller checks are just a few of the things you have told me.
I welcome further comments including those of you that are being treated well by your bank.
The reason for this email is however to let you know that Small Business California is going to be sending a letter today to the SBA Office of Advocacy supporting their doing research into the actions of banks and their treatment of small businesses. Jere Glover the Advocate under the Clinton administration did this and it had an impact in the way banks dealt with their small business customers.
I will cite examples that you have provided me.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, October 18, 2010
Big Banks
The story about Bank of America hiring 1000 people but they had no plans to get back in the 7a and Express lending business seemed to have hit a nerve.
I am sending this follow up email to see how many of you have had problems with big banks not just in lending but in service and fees being charged. Include credit cards in the mix.
Could you please get back to me outlining those problems and what banks are creating these problems.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I am sending this follow up email to see how many of you have had problems with big banks not just in lending but in service and fees being charged. Include credit cards in the mix.
Could you please get back to me outlining those problems and what banks are creating these problems.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
W2s/ Bank Lending/ Bof A Hires 1000 employees to serve small business
Last week I sent to you information on how to call into a White House briefing about the W2 requirements under the health care bill.
As you know the bill required employers to include medical insurance cost in the W2s they were filing for their employers starting in 2011.
Announced at the briefing was that the inclusion of medical cost on W2s would be delayed until 2012.Please note that these health cost are not taxable for employees.
That is the same date that employers will be required to file 1099s for all businesses they pay over $600. Small Business California and the National Small Business Association continues to oppose this and are aggressively telling lawmakers small business wants a full repeal of the 1099 requirement.
On Thursday I talked to Senator Feinstein about the problems small businesses are having getting loans and credit from banks. She indicated that she was going to contact Ben Bernanke on this and I await hearing from her office.
What I would like to know from you is - are you seeing any loosening of credit now that the Small Business Jobs bill has passed?
Bank of America indicated that it would be hiring 1000 employees to serve small business. When Sharon Bernstein of the LA Times asked if this means they will be making more loans to small business she was told they had no plans to do this. The newly hired employees would be used to forge relationships with small business and get them to use B of A for deposits, credit cards,payroll, pensions etc. At its peak B of A made 15000 loans to small businesses around the country and now makes almost no 7a and Express loans.
I don’t know about you but I don’t need another bank to take my deposits and give me overpriced credit cards and not give me a loan.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2109
As you know the bill required employers to include medical insurance cost in the W2s they were filing for their employers starting in 2011.
Announced at the briefing was that the inclusion of medical cost on W2s would be delayed until 2012.Please note that these health cost are not taxable for employees.
That is the same date that employers will be required to file 1099s for all businesses they pay over $600. Small Business California and the National Small Business Association continues to oppose this and are aggressively telling lawmakers small business wants a full repeal of the 1099 requirement.
On Thursday I talked to Senator Feinstein about the problems small businesses are having getting loans and credit from banks. She indicated that she was going to contact Ben Bernanke on this and I await hearing from her office.
What I would like to know from you is - are you seeing any loosening of credit now that the Small Business Jobs bill has passed?
Bank of America indicated that it would be hiring 1000 employees to serve small business. When Sharon Bernstein of the LA Times asked if this means they will be making more loans to small business she was told they had no plans to do this. The newly hired employees would be used to forge relationships with small business and get them to use B of A for deposits, credit cards,payroll, pensions etc. At its peak B of A made 15000 loans to small businesses around the country and now makes almost no 7a and Express loans.
I don’t know about you but I don’t need another bank to take my deposits and give me overpriced credit cards and not give me a loan.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2109
Friday, October 15, 2010
What does small business want/ Information about CEA conference
Yesterday I got a call from a reporter asking what small business would like the next Governor of California to do to help California small businesses?
I would like to know your thoughts. I would also like to know if you would be willing to talk to the media on this.
Who are you supporting for Governor?
The California Employers Association (CEA) is having their 73rd Annual Conference and Meeting on Wednesday, November 3 in Sacramento at the Arden Hills Resort Club and Spa.
Please go to the link below to find out about the event and the speakers who will be there. Memberss of Small Business California can attend this event at the ‘Member’ price of $99. To take advantage of this opportunity, you need to call 1-800 399-5331 to register. You cannot register online.
http://www.employers.org/index.php?option=com_jcalpro&Itemid=29&extmode=view&extid=11
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I would like to know your thoughts. I would also like to know if you would be willing to talk to the media on this.
Who are you supporting for Governor?
The California Employers Association (CEA) is having their 73rd Annual Conference and Meeting on Wednesday, November 3 in Sacramento at the Arden Hills Resort Club and Spa.
Please go to the link below to find out about the event and the speakers who will be there. Memberss of Small Business California can attend this event at the ‘Member’ price of $99. To take advantage of this opportunity, you need to call 1-800 399-5331 to register. You cannot register online.
http://www.employers.org/index.php?option=com_jcalpro&Itemid=29&extmode=view&extid=11
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, October 08, 2010
State to Receive over $168 million For Small Business Loans
Yesterday I learned that the state will be receiving over $168 million from the Federal government for small business loans.
This is as a result of the passage of the Small Business Jobs Bill that Small Business California and the National Small Business Association fought so hard for.
It is estimated that this will leverage $1.7 billion for loans to California small businesses.
This along with the money in the California budget[ assuming it gets passed] will mean almost $2 billion will be available to California small businesses.
I hope you find the information provided in these emails helpful. If you haven’t already joined Small Business California I hope you will consider doing so.
Small Business California is making a difference in Sacramento and Washington. We also have a lobbyist in Sacramento to represent your interest.
The cost is $150 for businesses with revenues under $1 million and $300 with revenues over $1 million.
You can join online by going to www.smallbusinesscalifornia.org
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
This is as a result of the passage of the Small Business Jobs Bill that Small Business California and the National Small Business Association fought so hard for.
It is estimated that this will leverage $1.7 billion for loans to California small businesses.
This along with the money in the California budget[ assuming it gets passed] will mean almost $2 billion will be available to California small businesses.
I hope you find the information provided in these emails helpful. If you haven’t already joined Small Business California I hope you will consider doing so.
Small Business California is making a difference in Sacramento and Washington. We also have a lobbyist in Sacramento to represent your interest.
The cost is $150 for businesses with revenues under $1 million and $300 with revenues over $1 million.
You can join online by going to www.smallbusinesscalifornia.org
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Thursday, October 07, 2010
Budget and Small Business
You all know that budget discussions are going on in Sacramento.
Two bills called trailer bills are being discussed and look like they have a good chance of being included in the budget. These bills are SB 872 and AB 1672. They are important in that they will provide about $32 million to small business programs.
$20 million will go to the existing Small Business Loan program at Business Transportation and Housing. This will leverage about $100 million in bank loans and/ or lines of credit and will serve it is estimated 1000 business.
$6 million will go to a program called the California Capital Access Program [Cal Cap]. This will triple the size of their current program and would leverage $135 million in loans and serve about 1000 businesses.
The real big piece however is $6 million to the Small Business Development Center program. SBDCs have been hit hard by the Community Colleges pulling back their funding. This money is matched by the SBA so it means $12 million to SBDCs.
Small Business California is watching this closely and we are being told this should get passed.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Two bills called trailer bills are being discussed and look like they have a good chance of being included in the budget. These bills are SB 872 and AB 1672. They are important in that they will provide about $32 million to small business programs.
$20 million will go to the existing Small Business Loan program at Business Transportation and Housing. This will leverage about $100 million in bank loans and/ or lines of credit and will serve it is estimated 1000 business.
$6 million will go to a program called the California Capital Access Program [Cal Cap]. This will triple the size of their current program and would leverage $135 million in loans and serve about 1000 businesses.
The real big piece however is $6 million to the Small Business Development Center program. SBDCs have been hit hard by the Community Colleges pulling back their funding. This money is matched by the SBA so it means $12 million to SBDCs.
Small Business California is watching this closely and we are being told this should get passed.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, October 01, 2010
Exchange Bills Signed By Governor
The Governor signed yesterday SB 900 and AB 1602 which will begin to set the structure for the Exchange in California. See press release below.
I will be representing Small Business California at the event with the Governor and the media call in afterward.
Small Business California member Janet Hildreth owner of Tree Lovers Floors in San Francisco will also be there.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
View this email in a web browser Forward to a friend
PRESS RELEASE
For Immediate Release:
Thursday, September 30, 2010
Contact: Aaron McLear
Rachel Arrezola
916-445-4571
Gov. Schwarzenegger Signs Legislation Making California the National Leader on Health Care Reform
California is First State in the Nation to Create Health Benefit Exchange.
Governor Arnold Schwarzenegger today signed AB 1602 by Assembly Speaker John Pérez (D-Los Angeles) and SB 900 by Senator Elaine Alquist (D-Santa Clara) creating the California Health Benefit Exchange, an entity that will help California consumers and small businesses shop for and buy affordable health insurance starting in 2014. The Governor’s action makes California the first state in the nation to enact legislation creating a health benefit exchange under federal health care 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,” said Governor Schwarzenegger. “Choice and competition have the power to improve health care quality and reduce health care costs for California consumers. With the California Health Benefit Exchange, we will be able to create a competitive marketplace where consumers can choose among qualified health plans – all without relying on the state’s General Fund.”
The Governor announced earlier this year that he is taking aggressive action to implement federal health care reform in California including helping develop the structure for an exchange to foster competition and make health insurance affordable. The Governor formed a Health Care Reform Task Force to implement key reform provisions and programs under health care reform this year, including the Exchange.
The California Health Benefit Exchange will make it easier for individuals and employees of small businesses to compare plans and buy health insurance in the private market using federal tax subsidies to make health coverage more affordable. Federal health care reform makes tax credits and subsidies available in 2014 to Californians with incomes between 133 and 400 percent of the federal poverty level (approximately $29,000 to $88,000 for a family of four).
The Exchange will be governed by a five-member board appointed by the Governor and the legislature. Between now and the end of 2013, the Exchange board and staff will develop procedures and criteria to enroll Californians in the Exchange and select qualified health plans to participate. Similar to the purchasing pool proposed as part of comprehensive health reform advanced by Governor Schwarzenegger in 2007, the Exchange will enhance competition and give individuals and employees of small businesses the same advantages available to large employer groups including a more stable risk pool, greater purchasing power, more competition among insurers and detailed information regarding the price, quality and service of health coverage.
“We believe the Exchange will improve the way millions of Californians get health insurance in our state,” said California Health and Human Services Agency Secretary Kim Belshé, who chairs the Governor’s Task Force on Health Care Reform Implementation. “The Exchange will focus competition on price, quality and service – giving individuals and small business employees the same large-group purchasing advantages and more affordable options now enjoyed by those who work for large firms.”
The Exchange will work in partnership with agents and brokers, community organizations and other “navigators” to help consumers make informed decisions based on the price, quality and value. Once the Exchange opens in January 2014, California consumers will be able to use it to research their health coverage options and access federally-funded tax credits and cost-sharing subsidies. Click here to read more on the California Health Benefit Exchange.
The federal government announced today that California will receive $1 million to fund the costs of preliminary planning efforts related to the development of an Exchange. Additional federal implementation grants are expected be announced in the Spring of 2011. After 2014, the Exchange will be self-supporting from fees paid by health plans and insurers participating in the Exchange. No state General Funds are appropriated for operation of the Exchange.
In addition to taking action on the Health Benefit Exchange bills today, Governor Schwarzenegger announced he also signed the following bills to implement health care reform in California:
SB 1163 by Senator Mark Leno (D-San Francisco) - Health care coverage: denials: premium rates.
· In July, Governor Schwarzenegger announced the state’s medical insurance rate review proposal to make costs more transparent and ensure greater consumer protection. SB 1163 embodies the Governor’s proposal by requiring all premium filings be reviewed and certified by an independent actuary to ensure premium costs are accurately calculated and all proposed rate increases be posted on both department and insurer websites making costs more transparent. These consumer protections exceed what federal law requires under federal health care reform.
SB 1088 by Senator Curren Price (D-Los Angeles) – Health care coverage: dependents.
· This bill prohibits health plans and health insurers from setting the limiting age for dependent children covered by their parent’s health insurance policy at less than 26 years of age.
AB 2244 by Assemblymember Mike Feuer (D-Los Angeles) – Health care coverage.
· AB 2244 implements and phases-in provisions of federal health care reform, ensuring that children cannot be denied coverage or priced out of the market if they have pre-existing conditions. The bill prohibits insurers that sell individual market policies in California from refusing to sell or renew coverage to kids with pre-existing conditions.
AB 2345 by Assemblymember Hector De La Torre (D-South Gate) – Health care coverage: preventive services.
· Aligning state law with federal health care reform, AB 2345 requires health care service plan contracts to cover certain preventive services with no cost-sharing.
AB 2470 by Assemblymember Hector De La Torre (D-South Gate) – Health care coverage: cancellation: rescission.
· This bill prohibits a person’s health care insurance policy from cancelling insurance once the enrollee is covered unless there is a demonstration of fraud or intentional misrepresentation of material fact by the terms of contract or policy.
The Governor and his Administration have been working since federal health care reform passed to implement key elements in California before the 2014 start date. In April, the Governor announced the state will contract with the federal government to operate a temporary health insurance program for medically uninsured individuals with preexisting medical conditions. In July, the Governor’s Administration submitted the state’s proposal to the federal government to establish and operate the federal Pre-existing Condition Insurance Plan through a public-private partnership with contracted vendors, which will be overseen by the California Managed Risk Medical Insurance Board. To implement this program and expand affordable health coverage to uninsured Californians with pre-existing medical conditions, the Governor also recently signed legislation creating the Federal Temporary High Risk Health Insurance Fund to receive $761 million in federal funding: SB 227 by Senator Elaine Alquist (D-San Jose) and AB 1887 by Assemblymember Mike Villines (R-Clovis).
Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814
I will be representing Small Business California at the event with the Governor and the media call in afterward.
Small Business California member Janet Hildreth owner of Tree Lovers Floors in San Francisco will also be there.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
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PRESS RELEASE
For Immediate Release:
Thursday, September 30, 2010
Contact: Aaron McLear
Rachel Arrezola
916-445-4571
Gov. Schwarzenegger Signs Legislation Making California the National Leader on Health Care Reform
California is First State in the Nation to Create Health Benefit Exchange.
Governor Arnold Schwarzenegger today signed AB 1602 by Assembly Speaker John Pérez (D-Los Angeles) and SB 900 by Senator Elaine Alquist (D-Santa Clara) creating the California Health Benefit Exchange, an entity that will help California consumers and small businesses shop for and buy affordable health insurance starting in 2014. The Governor’s action makes California the first state in the nation to enact legislation creating a health benefit exchange under federal health care 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,” said Governor Schwarzenegger. “Choice and competition have the power to improve health care quality and reduce health care costs for California consumers. With the California Health Benefit Exchange, we will be able to create a competitive marketplace where consumers can choose among qualified health plans – all without relying on the state’s General Fund.”
The Governor announced earlier this year that he is taking aggressive action to implement federal health care reform in California including helping develop the structure for an exchange to foster competition and make health insurance affordable. The Governor formed a Health Care Reform Task Force to implement key reform provisions and programs under health care reform this year, including the Exchange.
The California Health Benefit Exchange will make it easier for individuals and employees of small businesses to compare plans and buy health insurance in the private market using federal tax subsidies to make health coverage more affordable. Federal health care reform makes tax credits and subsidies available in 2014 to Californians with incomes between 133 and 400 percent of the federal poverty level (approximately $29,000 to $88,000 for a family of four).
The Exchange will be governed by a five-member board appointed by the Governor and the legislature. Between now and the end of 2013, the Exchange board and staff will develop procedures and criteria to enroll Californians in the Exchange and select qualified health plans to participate. Similar to the purchasing pool proposed as part of comprehensive health reform advanced by Governor Schwarzenegger in 2007, the Exchange will enhance competition and give individuals and employees of small businesses the same advantages available to large employer groups including a more stable risk pool, greater purchasing power, more competition among insurers and detailed information regarding the price, quality and service of health coverage.
“We believe the Exchange will improve the way millions of Californians get health insurance in our state,” said California Health and Human Services Agency Secretary Kim Belshé, who chairs the Governor’s Task Force on Health Care Reform Implementation. “The Exchange will focus competition on price, quality and service – giving individuals and small business employees the same large-group purchasing advantages and more affordable options now enjoyed by those who work for large firms.”
The Exchange will work in partnership with agents and brokers, community organizations and other “navigators” to help consumers make informed decisions based on the price, quality and value. Once the Exchange opens in January 2014, California consumers will be able to use it to research their health coverage options and access federally-funded tax credits and cost-sharing subsidies. Click here to read more on the California Health Benefit Exchange.
The federal government announced today that California will receive $1 million to fund the costs of preliminary planning efforts related to the development of an Exchange. Additional federal implementation grants are expected be announced in the Spring of 2011. After 2014, the Exchange will be self-supporting from fees paid by health plans and insurers participating in the Exchange. No state General Funds are appropriated for operation of the Exchange.
In addition to taking action on the Health Benefit Exchange bills today, Governor Schwarzenegger announced he also signed the following bills to implement health care reform in California:
SB 1163 by Senator Mark Leno (D-San Francisco) - Health care coverage: denials: premium rates.
· In July, Governor Schwarzenegger announced the state’s medical insurance rate review proposal to make costs more transparent and ensure greater consumer protection. SB 1163 embodies the Governor’s proposal by requiring all premium filings be reviewed and certified by an independent actuary to ensure premium costs are accurately calculated and all proposed rate increases be posted on both department and insurer websites making costs more transparent. These consumer protections exceed what federal law requires under federal health care reform.
SB 1088 by Senator Curren Price (D-Los Angeles) – Health care coverage: dependents.
· This bill prohibits health plans and health insurers from setting the limiting age for dependent children covered by their parent’s health insurance policy at less than 26 years of age.
AB 2244 by Assemblymember Mike Feuer (D-Los Angeles) – Health care coverage.
· AB 2244 implements and phases-in provisions of federal health care reform, ensuring that children cannot be denied coverage or priced out of the market if they have pre-existing conditions. The bill prohibits insurers that sell individual market policies in California from refusing to sell or renew coverage to kids with pre-existing conditions.
AB 2345 by Assemblymember Hector De La Torre (D-South Gate) – Health care coverage: preventive services.
· Aligning state law with federal health care reform, AB 2345 requires health care service plan contracts to cover certain preventive services with no cost-sharing.
AB 2470 by Assemblymember Hector De La Torre (D-South Gate) – Health care coverage: cancellation: rescission.
· This bill prohibits a person’s health care insurance policy from cancelling insurance once the enrollee is covered unless there is a demonstration of fraud or intentional misrepresentation of material fact by the terms of contract or policy.
The Governor and his Administration have been working since federal health care reform passed to implement key elements in California before the 2014 start date. In April, the Governor announced the state will contract with the federal government to operate a temporary health insurance program for medically uninsured individuals with preexisting medical conditions. In July, the Governor’s Administration submitted the state’s proposal to the federal government to establish and operate the federal Pre-existing Condition Insurance Plan through a public-private partnership with contracted vendors, which will be overseen by the California Managed Risk Medical Insurance Board. To implement this program and expand affordable health coverage to uninsured Californians with pre-existing medical conditions, the Governor also recently signed legislation creating the Federal Temporary High Risk Health Insurance Fund to receive $761 million in federal funding: SB 227 by Senator Elaine Alquist (D-San Jose) and AB 1887 by Assemblymember Mike Villines (R-Clovis).
Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814
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