San Francisco, CA– Small Business California is urging Governor Arnold Schwarzenegger to sign two related bills creating a state health insurance exchange, the single most important component of healthcare reform for small businesses.

The California legislature this week passed two landmark health insurance exchange bills, SB 900 and AB1602. This legislation will work to lay the foundation for California’s Health Benefit Exchange. One of the bills establishes the governance of the exchange. It consists of an independent agency with a five person board. The second bill creates the regulations that apply inside and outside the exchange. In California, 3 million small businesses will be eligible to purchase insurance through the exchange. This will create maximum competition, improve quality, increase choice and lower costs.

“It will be the primary vehicle for making healthcare affordable and accessible for California’s 3 million small businesses and their employees including 2 million self-employed entrepreneurs,” said Scott Hauge, president of Small Business California.