Healthy San Francisco Can Continue Requiring Employer Contributions For Health Care While Case Is Being Appealed, Justice Kennedy Rules

Main Category: Health Insurance / Medical Insurance
Also Included In: Litigation / Medical Malpractice
Article Date: 25 Feb 2008 - 0:00 PDT

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U.S. Supreme Court Justice Anthony Kennedy on Thursday ruled that San Francisco can continue requiring employers to contribute to the costs of the city's universal health care access program while a lawsuit challenging the initiative is pending, the San Francisco Chronicle reports (Egelko, San Francisco Chronicle, 2/22). Under the ordinance establishing Healthy San Francisco, private employers with at least 20 employees and not-for-profit groups with at least 50 employees must provide health care benefits at a cost that meets minimum spending levels or help cover the cost of the program. Other funding comes from tax revenue and member premiums.

The program is intended to ensure access to health care services at San Francisco clinics and the city's public hospital for San Francisco's 82,000 uninsured residents (Kaiser Daily Health Policy Report, 1/10).

The Golden Gate Restaurant Association filed the lawsuit, claiming that the program violates a federal law that prohibits state and local governments from regulating employee benefits. U.S. District Judge Jeffrey White in December 2007 agreed with the association and barred the city from requiring employers to contribute to the program. A federal appeals court suspended White's ruling and allowed the city to continue implementing the program while the case was on appeal (San Francisco Chronicle, 2/22).

Kennedy, without comment, refused the association's request to halt the program while the Ninth U.S. Circuit Court of Appeals considers its legality (AP/San Jose Mercury News, 2/22). Kennedy is designated to hear emergency requests for the Ninth Circuit. The appeals court will hear the case on April 17, before the first employer payments are due on April 30, according to the Chronicle.

Lawyers for the city and unions said that some restaurants have begun adding a surcharge to customers' bills to help offset the cost of employee health coverage, while others have informed workers that they will pay fees to the city. Healthy San Francisco Director Tangerine Brigham on Thursday said about 12,500 people have enrolled in the program (San Francisco Chronicle, 2/22). The city hopes an additional 40,000 uninsured residents will sign up this year, according to San Francisco Mayor Gavin Newsom's office (AP/San Jose Mercury News, 2/22).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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