REPORT TARGETS STATE NEED FOR INSURANCE.

Byline: Chris Sieroty Staff Writer

Despite an economic era of unparalleled growth and prosperity, the number of Californians lacking health insurance now stands at more than 7.3 million, according to a report to be released today.

The report titled ``The Importance of Healthcare in California,'' also focused on the impact the health care industry has on the state's economy and as a component in all of industry's need to have a healthy work force.

Currently, the health care industry is a $63 billion business with more than 920,000 employees, according to the report compiled by the Office of the State Controller and the Healthcare Collaborative at UCLA.

Our health care system, however, is in a state of crisis as the uninsured ranks rise, the quality of health care falls and the baby boom generation grays, state controller Kathleen Connell said in a statement.

``I strongly believe California cannot expect to continue its current economic expansion without adequate and comprehensive health care coverage for its residents,'' she said.

She gets no argument from some in the industry.

``We couldn't agree more,'' said David Olson, a spokesman for Woodland Hills-based Foundation Health Systems Inc. ``Many of the uninsured in California do get the care they need; unfortunately they get very expensive care in an emergency room.''

Only 48 percent of California firms offer their employees health insurance, compared with 61 percent nationally, the report said.

This is just one of several responses to the continuing problem of the uninsured. Two new bills now being considered by the state Legislature would help provide funding for the uninsured and increase accessibility to the state's Healthy Families program.

The smaller-employer tax credits bill (AB 1734) would provide a $65 per employee per month tax credit to firms with 25 or fewer full-time employees, provided the employees earn less than $34,700 a year.

``Assembly Bill 1734 offers a way for government to partner with the private sector to extend health insurance to the working uninsured in California,'' said Assemblyman Bill Campbell, R-Orange, who co-authored the bill with Assemblywoman Helen Thomson, D-Vacaville.

The W-4 form check-offs for Healthy Families Program enrollment bill, (AB 1974) authored by Assemblywoman Carole Migden, D-San Francisco, would allow employees to indicate their interest in Healthy Families enrollment on their state tax form.

The check-off would indicate interest in the program, and would authorize payroll deductions to cover premiums. With this form being completed by every employee statewide it would help to increase awareness and accessibility of enrolling in the Healthy Families program.

Introduced in 1998, the program is low-cost insurance that provides health, dental and vision coverage to nearly 240,000 children who are uninsured and don't qualify for noncost Medi-Cal.