*Lines drawn on health care

As expected, Gov. Arnold Schwarzenegger announced his ground-breaking health insurance package that would require employers with 10 or more workers to either provide coverage or pay into a state-run program. And, as expected, small business owners are in a lather over the plan, calling it a "job tax" and vowing to lead the opposition. It's not just business owners who face an extra cost - under the governor's plan, doctors would be taxed 2 percent of their gross revenue and hospitals would be taxed 4 percent. Did we say "tax"? Well, yeah, but Schwarzenegger claims that medical providers would be ahead of the game because many more people will have insurance.

It's way too early to know whether the proposal stands a chance, though much will depend on the governor's ability to gather up a coalition that includes moderates on both sides (and which is large enough so that legislators supporting the plan won't be sitting ducks in their next campaigns). The other question is whether this thing could actually work - or, more to the point, whether watered-down compromise legislation could work (it's obviously not getting through in one piece). Despite the moaning by small business owners, it's a good bet that many larger employers will support the plan (they're already shelling out for health care on their own) - and that group could serve as the tipping point. But let's not get ahead of things - this is really early in the process.

Instant reaction is predictably mixed. “Gov. Schwarzenegger’s plan goes well beyond covering more people. It is a comprehensive vision of how to create a rational and efficient health care market,” said Peter Harbage, a Senior Program Associate with the New America Foundation. “There is no other way to say it: the plan is bold.” On the other hand, California Nurses Association President Deborah Burger said the plan amounts to “little more than a fresh coat of paint on a collapsing house.” LAT

*NYT