To succeed with his plan to extend health care to 6.5 million uninsured Californians, Gov. Arnold Schwarzenegger will have to find common ground between groups that often are at odds. Union leaders quickly balked at a requirement that all Californians have insurance, calling it a tax on the middle class. A demand that all but the smallest businesses offer their workers insurance upset many of Schwarzenegger's business allies. Under the proposal, all Californians must have insurance, although the poorest will be subsidized. Those who go uncovered will be subject to tax penalties.
See "Calif. Gov Calls for Universal Coverage", Associated Press, The New York Times, January 8, 2007