SACRAMENTO, Calif. (Jan. 8) - Gov. Arnold Schwarzenegger on Monday proposed to extend health coverage to nearly all of California's 6.5 million uninsured people, promising to spread the cost among businesses, individuals, hospitals, doctors, insurers and government.

The plan contains elements that are likely to provoke opposition from a wide range of powerful interests, including doctors, hospitals and insurers, as well as employers and unions. But it also contains incentives for each of them.

All children, regardless of their immigration status, would be covered through an expansion of the state and federal Healthy Families program.

"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."