GOV. TO SEEK INSURANCE FOR ALL CHILDREN

If enacted by the Legislature, his proposal would affect about 763,000 children who now lack insurance. Although the administration has not revealed details of how it would pay for such a program, officials estimate that extending insurance to all children could cost the state as much as $400 million a year.

That would be a small piece of Schwarzenegger's stated goal: to ensure medical coverage for all of the 6.5 million Californians who now have none. Experts say that could cost upward of $10 billion a year.

If successful, the governor's effort to cover all children would be a substantial political feat. Only a few states guarantee coverage for all those under 18. Schwarzenegger himself vetoed a measure to cover all children in 2005, complaining that lawmakers offered no way to pay for it.

California's Republican legislators, who blocked a more modest effort to extend healthcare coverage last year, are sure to rebel against a plan that includes children of illegal immigrants.

Schwarzenegger is scheduled to announce his full health plan Monday. His office is still finalizing many parts of that package, but aides have made clear that it will be an ambitious effort to restrain healthcare costs and reduce the state's uninsured population.

All sectors of the healthcare industry, including hospitals, insurers, doctors, patients, businesses and government, would pay some of the costs under Schwarzenegger's plan. People familiar with the proposal say that it includes new requirements for businesses to cover employees, though the details were unclear. The more cost shouldered by employers and workers, the less the state would have to spend.

In addition, a number of measures favored by some aides, such as limiting the profits of insurers, remain undecided.

"There is no final health plan," said Adam Mendelsohn, Schwarzenegger's communications director. "As has been the case from the start, all ideas are on the table and the final touches are being applied. The administration is not confirming the inclusion of any one piece."