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Safeway CEO Applauds Governor Schwarzenegger's Health Reform Proposal; Cites Right Solutions to Fix California's Broken Health Care System

Posted on: Monday, 8 January 2007, 15:00 CST

Safeway Inc. Chairman, President and CEO Steve Burd today praised California Governor Arnold Schwarzenegger for his leadership in advancing a bold and innovative plan to reform California's broken health care system. Mr. Burd, who has implemented a series of similar health reforms to cut skyrocketing health costs and improve employee health care at Safeway, today participated in a panel discussion with the Governor and leaders from business, labor, government and health care, during which the Governor unveiled his legislative proposal to rein in the costs and affiliated problems with California's broken health care system.

"The Governor has put forth an innovative and broad-based proposal to fix California's broken health care system and I applaud his leadership," said Burd. "The Governor's proposal contains key elements critical to any health care reform proposal, including market-based solutions, cost controls, more individual and shared responsibility in health care decision-making, and a greater role for preventive care and behavior."

Mr. Burd cited key elements in the Governor's plan that would reduce overall health care costs, insure all Californians and solve many of the inefficiencies that drive up health care costs. The Governor's plan includes market-based solutions, an individual mandate, incentives to encourage healthy behavior, an emphasis on preventive care, and shared responsibility among individuals, employers, government and health care providers. Mr. Burd called attention to the plans recently introduced by Assembly Speaker Fabian Nunez and Senate Pro Tem Don Perata that also contain elements of these core components, underscoring the fact that there are areas of consensus across party lines that can be reached. Mr. Burd said any final measure should promote these principles, while ensuring an adequate level of coverage for individuals and families.

"With the combined leadership of the Governor and the Legislature, I am confident California can enact a bold and innovative reform measure this year," said Burd. "There is an opportunity for California to lead the national debate on health care reform and drive the federal government to finally take action in solving this national crisis. With business, labor, government, consumer groups and health care providers working together, we can collectively solve this problem."

Mr. Burd has been a leading voice for market-based health care reforms at the state and national level for more than a decade. During the past two years Safeway has instituted an innovative plan for its non-union workforce that aligns personal incentives with healthy choices. In 2007, more than 70% of eligible non-union employees will be enrolled in this plan, which pays 100% of preventive care and provides incentives to improve health care decisions. The total health care costs for these employees have decreased 30% over the two year period versus the prior increasing trend.

Mr. Burd is currently addressing state and national forums to urge business, labor, government and the health care industry to work together to forge solutions to the health care crisis. Recent addresses include the U.S. Chamber Foundation, the Governor's Health Care Summit, the Milken Institute Global Conference, and the California Chamber of Commerce where Mr. Burd has emphasized the need for market-based solutions, more individual control in health care decision-making, and incentives for preventive care to help improve patient care and reduce costs. Mr. Burd has also worked closely with U.S. Senator Ron Wyden (D-OR) on potential federal health care solutions and joined him at a recent event to unveil draft federal legislation to fundamentally reform the nation's broken health care system.

ABOUT SAFEWAY

Safeway Inc. (NYSE:SWY) is a Fortune 50 company and one of the largest food and drug retailers in North America. Headquartered in California, the company operates 1,767 stores in the United States and Canada and has annual sales of $39.7 billion for the period ended September 9, 2006. Safeway is one of the largest private employers in California, operating more than 532 stores in the state. Safeway is a corporate leader in the communities it serves, supporting a broad range of charitable and philanthropic programs. Last year, through the Safeway Foundation and its corporate giving programs, the company donated more than $150 million to important causes, such as cancer research, education, food banks and programs focused on assisting people with disabilities. The company's common stock in traded on the New York Stock Exchange under the symbol SWY.

Source: Business Wire

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