Health reform in the United States and in California has been a subject of major debate recently. While some have cautiously accepted the new health care reform proposals, many have rejected it outright by saying it will increase the financial burden for tax payers. While nobody is questioning the need for reforms, it is the manner in which the matter is being proposed that is being debated. Before trying to understand the actual impact of Obama’s healthcare reforms in California, it is important to understand what exactly the President is proposing by way of these reforms.

The first aspect of these reforms is to ensure health insurance to all in the US. Statistics state that many Californian residents are either uninsured or under insured. More than 20% of adults under age 65 are uninsured in 11 of California's 53 congressional districts.  Many of these people end up paying tremendously for health care, which often leads to personal bankruptcy. Another drawback of the present insurance system, which the President is proposing to change through his reforms, is the lack of personal security. People are are also increasingly finding themselves paying for many out-of-pocket expenses that were typically covered by health insurance just ten years ago.

President Obama's advisers concluded that health care reform would save the state of California more than the $2.14 billion which currently state and local governments spend treating the uninsured. Obama's advisers also state that his proposals will call for the Federal government to cover most of the cost of Medi-Cal, leaving California to pay just under $200 million annually.

President Obama plans to cut costs, bring affordable health care within the reach of all citizens, and stop insurance firms from rejecting the sick & elderly.  Governor Schwarzenegger has stated he agreed with Obama's efforts to overhaul health care and sees the benefits it brings to the state.  The impact of the Obama plan will greatly reduce undue stress on the citizens of California while protecting patients from predatory practices of health insurance companies.