S.F. Supervisors Give Initial Approval To Adjust Health Care Law

On Tuesday, the San Francisco Board of Supervisors preliminarily approved a measure that aims to strengthen a city mandate that employers provide funds for employees' health care costs, the San Francisco Chronicle reports.

Mayor Ed Lee (D) is expected to veto the measure, which is up for a final vote on Oct. 18.

Background

Under existing law, participating employers provide as much as $4,252 per uninsured employee annually for health care coverage. Employers can recoup any funds that are not used within a year.

In 2010, 860 of about 4,000 businesses covered by the law contributed $62.5 million to the health reimbursement accounts. Only about $12.4 million of that was actually disbursed.

Details of the Measure

The supervisors voted 6-5 to approve the legislation, by Supervisor David Campos, that would amend the city statute so that employers would have to wait to take back any unused funds until 18 months after a worker has left the job.

Businesses argue that the adjustment could harm their establishments because they rely on unused funding to help maintain their operations.

Alternative Plans

Meanwhile, Lee has proposed an alternative measure that would prohibit participating employers from pocketing the unused funds for 18 months while a survey determines the extent to which employers control the use of the funds. Some plans forbid employees from using the funds for dental health care or to purchase separate insurance.

In addition, board President David Chiu put forward another plan that would require at least one year's worth of unused employer contributions always to be available (Gordon, San Francisco Chronicle, 10/5).