BEIJING, Jan. 9 (Xinhuanet) -- California Governor Arnold Schwarzenegger intends to ask businesses, doctors, hospitals, individuals, insurers and the state government to ante up the money needed to provide health coverage to nearly all of the state's 6.5 million uninsured people, and all children regardless of immigration status.

    The governor's plan is likely to spark opposition from a powerful interests, including doctors, hospitals and insurers, as well as employers and unions. But it also contains benefits for each of them.

    "I don't think it is a question or a debate if they ought to be covered. ... The federal courts have made that decision -- that no one can be turned away," Schwarzenegger said. "The question really isn't to treat them or not to treat them. The question really is how can you treat them in the most cost-effective way."

    All Californians would be required to have insurance, although the poorest would be subsidized, under Schwarzenegger's proposal. Businesses with 10 employees or more would have to offer insurance to their workers or pay 4 percent of their payroll into a state fund. Smaller businesses would be exempt.

    Also, insurers would no longer be allowed to deny coverage to people because of their medical problems.

    The state would subsidize the estimated 1.2 million poor people who do not currently qualify for state health coverage. They would be able to purchase insurance through a state-run pool and would have to make a small contribution toward their premiums.

    Schwarzenegger is betting that his plan will save 10 billion U.S. dollars a year by cutting health care costs. He says the savings would offset the new fees he is asking doctors and hospitals to pay -- 4 percent of revenue for hospitals and 2 percent for doctors.

    The state also would increase what it pays doctors and hospitals through Medi-Cal, the state insurance plan for the poor.

    The governor was supposed to give his address in person to a panel of health care officials. Instead, he spoke via video link since he is still recuperating from broken leg suffered in a skiing accident.

    (Agencies)