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California Gov. Arnold Schwarzenegger announced a sweeping proposal to require all Californians to have insurance, with the poorest receiving subsidies. Under Schwarzenegger’s plans, businesses with 10 or more employees would have to offer insurance to their workers or pay 4% of their payroll into a state fund, while smaller businesses would be exempt. Insurers would no longer be allowed to deny coverage to people because of their medical problems. And all children, regardless of immigration status, would be covered through an expansion of the state and federal Healthy Families program. Hospitals and doctors would be required to pay 4% and 2% of their annual revenue, respectively, to support the plan. Schwarzenegger said an estimated $10 billion in annual savings from lower healthcare costs would offset the new fees. The state also would increase what provider reimbursement under Medi-Cal, its Medicaid program.