Campos Plans Proposal To Close Healthy San Francisco Loophole
San Francisco Supervisor David Campos is proposing legislation that would ensure money that employers deposit into workers' health savings accounts is actually used for health care expenses, instead of being recouped by the businesses, the San Francisco Chronicle reports.
Currently, businesses can claim unused money in their workers' health savings accounts after two years.
For example, 860 employers in 2010 deposited $62.5 million into employees' health care accounts, but only $12.4 million was used on health care, and employers kept the remaining funds (Coté et al., San Francisco Chronicle, 3/11).
In 2011, Campos proposed a similar amendment to Healthy San Francisco -- the city's universal health care program -- that would have adjusted a rule governing how employers recover employees' unused health care funds. It would have required employers to wait 18 months after a worker left a job before recovering the money.
However, Mayor Ed Lee (D) vetoed the amendment after businesses argued that the legislation could force them to close, relocate, lay off workers or postpone expansion plans (California Healthline, 10/26/11).
Details of New Proposal
Campos is expected on Tuesday to ask the city attorney to draft new legislation preventing employers in the city from recouping money from health savings accounts after two years.
According to the Chronicle, Campos' proposal could have a better chance this year because of frustrations regarding the city's income disparity. The Chronicle notes that Campos might receive the eight votes necessary to make the legislation veto-proof (San Francisco Chronicle, 3/11).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.