Bush Administration Announces Support for Restaurant Association in Healthy San Francisco Lawsuit

The Bush administration recently announced support for a lawsuit filed by the Golden Gate Restaurant Association against the city of San Francisco contending that the Healthy San Francisco program violates the federal Employee Retirement Income Security Act, the San Francisco Chronicle reports (Egelko, San Francisco Chronicle, 4/16).

The program seeks to ensure access to health care services at city clinics and the city's public hospital for the 82,000 uninsured residents. Under the program, which began on Jan. 9, private employers with at least 20 employees and not-for-profit groups with at least 50 employees must spend a certain amount on health care (Kaiser Daily Health Policy Report, 3/18).

The Ninth U.S. Circuit Court of Appeals heard the lawsuit on Wednesday. Federal Department of Labor attorneys planned to appear with the restaurant association attorneys to argue the case. A three judge panel of the appeals court previously ruled that the city could proceed with the law pending the outcome of the appeal. The panel said that employers in San Francisco are required only to spend a defined amount on health care, not to set up a health plan or change the terms of a pre-established plan. According to DOL attorneys, however, the program is seeking to regulate employee benefit plans in requiring either that coverage by provided or a fee be paid to the city (San Francisco Chronicle, 4/16).