Thread: CA: Judge: SF employers don't have to pay for health care

Judge: SF employers don't have to pay for health care
By LISA LEFF, The Associated Press
2007-12-27 05:20:42.0


SAN FRANCISCO -
A federal judge on Wednesday struck down a key provision of a new city program providing basic health care to uninsured residents, ruling that employers cannot be required to subsidize the ambitious plan.

U.S. District Judge Jeffrey White ruled Wednesday that the mandate, set to take effect on Jan. 1, would violate a 1974 federal law requiring consistency in the health coverage afforded employees who work for the same company, but live in different jurisdictions.

"By mandating employee health benefit structures and administration, those requirements interfere with preserving employer autonomy over whether and how to provide employee health coverage, and ensuring uniform national regulation of such coverage," White wrote.

The judge's ruling came in a lawsuit brought by the Golden Gate Restaurant Association, which argued that the mandatory contributions the city sought placed a costly burden on members already struggling to make a profit.

"We specifically asked in our litigation only to throw out the employer mandate and not the rest of the program, which we totally support," said Kevin Westlye, the association's executive director.

The city program, Healthy San Francisco, was designed to give 82,000 uninsured San Francisco residents access to medical services at local clinics regardless of their immigration or employment status. It was launched in July with initial eligibility limited to the city's poorest residents and more than 6,500 people have signed up so far.

The program is set to expand to cover a broader cross-section of the population after the first of the year, a step Mayor Gavin Newsom promised to carry out, although possibly at a slower pace, despite Wednesday's court action.

"We are undeterred," he said in a statement.

To offset the estimated annual price tag of $200 million, city officials passed a law requiring companies with 20 or more workers to spend at least $1.17 per hour toward each employee's health care. Those with more than 100 workers would have to pay $1.76 per hour up to a monthly maximum of $180 per worker.

Companies that already offered their workers health coverage still would have had to pay into the system if their insurance contributions did not meet the city's minimum funding levels.

City attorney Dennis Herrera said he planned to seek an immediate stay of White's decision on Thursday while his office appeals the ruling. He said the city's plan does not violate federal law because it gives employers several options for satisfying the spending requirement.

"Without this stay, tens of thousands of San Francisco residents and workers will be deprived of critically necessary health care services - and will suffer the health related and financial consequences - during the pendency of this appeal," Herrera said in a statement.

Westlye said the employer mandate would more than double the amount that restaurants with more than 100 employees already spend to insure their workers, raising their annual health care costs from about $100,000 a year to more than $250,000.

"We didn't litigate until all options were off the table, our voice was not heard and what we thought were very creative ideas for alternative funding mechanisms were ignored," he said.

www.examiner.com

OMG that is two 9th circus rulings I agree with. Would somebody remind me to make an appointment with my dr? Dementia must be setting in

all I can figure is that the end of the world is near..... this is one of most liberal court system in the country... WOW

all I can figure is that the end of the world is near..... this is one of most liberal court system in the country... WOW







Orrrrrrr.....maybe some judges are suddenly afraid that their careers might end?

One major victory for our side!! Stop hiring illegal aliens!!

"Without this stay, tens of thousands of San Francisco residents and workers will be deprived of critically necessary health care services - and will suffer the health related and financial consequences - during the pendency of this appeal," Herrera said in a statement.

What he's really saying is that tens of thousands of San Francisco's illegal aliens will be deprived of health care.

Well TOO BAD! Why should employers who are already providing health care benefits for their employees have to pay MORE just to cover illegals?

I don't know what's in the drinking water in San Fran, but I'll tell you, that city is downright scary.

I don't know what's in the drinking water in San Fran, but I'll tell you, that city is downright scary. Shocked

You think they are scary, try their neighbors Berkeley
We keep voting them off the island, but they won't go.