State Disability Health Care System.

STATE DISABILITY HEALTH CARE SYSTEM. INITIATIVE STATUTE. Creates State Health Insurance Fund and twenty-one member board to transact disability health insurance on fee-for-service basis. Requires board to set fees for services covered by Fund and private insurers; establishes co-payment limitations; health care providers to accept established fee plus co-payment as payment in full; insurers to pay health care providers directly. Authorizes board to establish disability health insurance programs for working poor. Exempts board from open meeting laws; Public Records Act; other statutory provisions. Provides $2 million loan from General Fund; tax credits to employers and members. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure would result in a net reduction in state General Fund revenues of about $4 billion annually, with a commensurate reduction in state spending unless the Legislature acts to offset the revenue loss. One-half of the reduction in state spending would come from K-14 schools and the remainder from other programs. The measure would also result in potential state savings to the General Fund of up to the high tens of millions of dollars annually in state health care programs and potential county savings of up to the high tens of millions of dollars annually for indigent health care programs