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Gov. Arnold Schwarzenegger's health care reform proposal would:

Require all state residents to have health insurance coverage

Require all employers--except those with fewer than 10 employees--that do not offer health coverage to pay a fee equal to 4% of payroll

Subsidize premiums for low-income individuals with state funds

Impose new taxes on hospitals and doctors

Require health insurers to use 85% of premiums on patient care

Significantly raise Medicaid reimbursement rates to providers

Conform state tax treatment of health savings account contributions to federal law