CALIFORNIA Health Insurance : EasyToInsureME : borrow $23 billion

CALIFORNIA Health Insurance : The state may need to borrow as much as $23 billion to meet its cash needs soon after fiscal year 2009-2010 begins, if voters do not approve three measures on the May 19 special election ballot. The measures, which are supposed to provide $5.8 billion in additional revenue, are part of the February budget agreement. Recent polling shows all measures will likely fail. If the polling is accurate, a new round of cuts and "creative" revenue enhancements will be needed. Legislative leaders are suggesting that approval of large industry-specific fee increases, rather than general tax increases, would be needed. In some cases an increase in fees, such as surcharges and regulator assessments, could be achieved with a majority vote while a general tax increase would require a two-thirds vote. In other news, Governor Arnold Schwarzenegger just signed legislation providing CalCOBRA beneficiaries with the same federal premium assistance opportunities as under COBRA.