To help make it possible, the proposal calls for a 2 percent fee on physician revenues, 4 percent on hospital revenues. It also requires at least 85 percent of hospital payments and insurance premiums be spent on patient care.

Insurance plans could base rates only on age, family size and their geographic area in an individual market. Plans would be required to offer incentives within the benefit package for "healthy actions."

To encourage employers to continue to offer health insurance as a benefit, those with 10 or more employees that don't offer coverage would have to contribute 4 percent of their payroll toward coverage.

As he worked on the proposal, he said many asked him why he would attempt reform that is politically risky and a huge undertaking.

"The only way you know if you can lift 500 pounds is if you put 500 pounds on the bar," said Schwarzenegger, a former Mr. Universe who first gained acclaim as a bodybuilder.

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E-mail: lois@desnews.com