Press Release: April 26, 2002
Living Wage Health Reform Legislation Advances
Bill Sponsored by Assemblywoman Jackie Goldberg Would Help Employers Provide Medical Coverage to Tens of Thousands of Low-Wage Workers

The Assembly Committee on Health this week voted to support legislation that will help businesses covered by living wage laws provide health insurance to their employees.

AB2178, authored by Assemblywoman Jackie Goldberg, would amend the California Health Reform Act (CHRA) to include living wage employers. Currently only businesses with 50 workers or less fall under the CHRA, which guarantees access to health plans and limits cost increases.

"The original goal of living wage laws was not only to provide decent wages, but to offer access to health care," said Goldberg. "This legislation will allow employers to provide health care without costing them or taxpayers a dime."
Twelve California cities have living wage laws in effect, covering nearly 34,000 workers. It is estimated that more than half of these workers do not have health insurance.

"The plight of uninsured workers is a human tragedy that we can and must address," said Christie Arowosegbe, health project coordinator with the Los Angeles Alliance for a New Economy, a nonprofit organization that is leading a coalition of groups supporting AB2178. "This legislation will dramatically improve the lives of tens of thousands of working Californians and their families."

AB2178 is supported by a broad range of health advocates, clergy, community-based organizations and labor groups. These include Health Access California, the California Labor Federation AFL-CIO, Clergy and Laity United for Economic Justice, AGENDA and Asians and Pacific Islanders' California Action Network, among others.

At Tuesday's hearing, AB2178 received strong business backing. A representative of the Staples Center in Los Angeles testified on behalf of the bill, and letters of support were submitted by other developers. The legislation is opposed by some health care providers, including Blue Cross.