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Healthcare Industry News > Federal judge rules against S.F. on health care plan

Federal judge rules against S.F. on health care plan

A judge's ruling may prevent San Francisco from providing health care to all of its uninsured citizens through an ambitious new medical insurance law. On December 26th, a federal judge said the law's requirement that employers who do not provide health insurance must pay a fee to the city was in violation of a 1974 law preventing local governments from trying to regulate employee benefits. Because the fee would have been an important source of funding for the health insurance program, this ruling would mean San Francisco could only cover a portion of its uninsured population not covered by Medicare or Medi-Cal already. Even with the ruling, residents earning less than $32,000 will be eligible for health care beginning January 2, 2008.

The ruling could also have implications for other universal health care attempts in the state. Governor Arnold Schwarzenegger's health care bill requires employer fees, too. One restaurant owner in the city suggested an alternative funding method: a small sales tax increase. That way the costs of providing health care would be spread among all businesses, not just a few.

Read original story in sfgate.com

 

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