A Sign of Things to Come for States’ Lawsuit Against Health Care Reform?

As you may have heard, there are 20 states filing a lawsuit against the federal government to get the health care reform bill overturned.  A judge will hear arguments in September on the motion to dismiss and set a tentative schedule that would move the case into the late fall. 

However, there was a recent ruling out in California regarding San Francisco’s universal health care law.  If you’re not aware, the San Francisco Board of Supervisors passed a law in 2006 that went into effect Jan. 1 2008 requiring businesses with 20 or more employees to either provide a certain amount of health care for their workers or pay a set amount into a city health care pool for every hour that uncovered employees worked.  Businesses that chose not to provide health care had to pay $1.31 (or more) for every hour worked by an uninsured employee. 

Well, the Supreme Court refused to hear a challenge on the suit that the Ninth U.S. Circuit Court of Appeals  had rejected in 2008.  That effectively handed the city a victory and allows the law to stand. This case can probably be used as a predictor for the states’ lawsuit against the health care reform bill.

And what has the impact of the San Francisco law been in the two and a half years it has been in effect?  You be the judge:

  • Emergency room visits at SF General Hospital down 27%
  • 53,000 of the formerly uninsured 60,000 adults in the city are now covered by Healthy San Francisco (the city run plan)
  • Employer penalties have risen from $1.17/hr in 2008 to $1.31/hr in 2010.
  • Most restaurants have been forced to raise menu prices or add a 3-4% service fee to each bill

One Response to A Sign of Things to Come for States’ Lawsuit Against Health Care Reform?

  1. Pingback: Health Care Bill Repealed!!! « Business Risk Management

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