Democrats go their own way on healthcare

Despite three months of extensive discussions with doctors, insurers, businesses and others, the administration has not yet offered healthcare legislation. Those interests remain concerned that Schwarzenegger's prescription will place too big a financial burden on them.

So Assembly Speaker Fabian Nunez (D-Los Angeles) and Senate President Pro Tem Don Perata (D-Oakland) have agreed to press ahead with their own program, hoping to meld legislation that each has been developing all year.

If they succeed, their healthcare vision -- not the governor's -- will become the template for negotiations.

"Our differences are very minimal, and once we reconcile our differences, I think you're going to have a product that fully reforms the healthcare system," Nunez said in an interview.

The leaders' new strategy changes the political landscape for Schwarzenegger, whose effort to impose universal coverage is being watched nationwide. The Democratic leaders would have the momentum on healthcare, and Schwarzenegger would have to negotiate with them in hopes of making their program more like his.

The Democrats still face substantial challenges. They have yet to determine how much some elements of their plan would cost and how much they could require of employers without sparking too much resistance from business groups. They also need to find enough common ground with Schwarzenegger to obtain his signature on their legislation.

Kimberly Belshe, Schwarzenegger's health and human services secretary, said she was optimistic about the governor's progress in negotiations, which have been going on daily in recent weeks. "We're right where we expected to be," she said.

But the focus now shifts to the Legislature.

With the Democrats' plans as blueprints, businesses may be required to spend more on health insurance for employees than the 4% of payroll that Schwarzenegger has proposed. The Democrats' ideas, like Schwarzenegger's, would give employers the option of providing insurance or paying into a state fund that would offer it to uninsured workers and those who can't afford individual policies.