Legislation approved by California's Senate would providelow-income state residents with health coverage for as little as$30 a month.

The measure allows for the creation of a Basic Health Plan,which would provide coverage to more than 720,000 qualifyinguninsured California residents, according to estimates.

The law, SB 703, authored by Sen. Ed Hernandez (D-West Covina),would provide health care coverage for monthlypayments that are lower than any other option under thefederal health care law.

The basic health plan would be available in 2014, which is inline with a health reform provision that allows states to createstate-administered, federally financed health plans for low-incomeindividuals.

"California's leaders recognize the importance of thisopportunity to set an example for the nation and enact a BasicHealth Plan that will provide comprehensive, high-quality healthplans to low-income residents," said John Ramey, ExecutiveDirector, Local Health Plans of California. "This is an opportunityfor three quarters of a million California residents to receive thehealth care they need and deserve."

According to a statement, the BHP will offer "equal to or betterbenefits available in the state health benefit exchange – but forless cost and exclusively for individuals with incomes between 133%and 200% of the federal poverty level. These are individuals thatwill be required by the federal law to buy insurance but who mayhave difficulty being able to afford the price of a policy offeredby the exchange."

To finance the BHP, California will receive 95 percent of thefederal money that otherwise would have been used for subsidies forthe Exchange.

California has the largest total number of people withoutinsurance—6.8 million— according to a December2010 Employee Benefit Research Institute report.

Over the past two decades, California has seen a surge in thepercentage of uninsured, as employer-sponsored coverage hasdecreased. Between 1987 and 2009, the segment of the non-elderlypopulation covered by insurance provided through an employercontinued to slide from 65 percent to 52percent.

Although increases in Medicaid coverage partially offset thedecline, EBRI said, more than 20 percent of Californiansremain uninsured.