San Francisco Restaurant-Goers Paying For Universal Health Care

San Francisco Restaurant-Goers Paying For Universal Health Care in Group Health Insurance

Last September, lawmakers passed Healthy San Francisco, city-wide legislation providing universal health care for every resident. 

The law went into effect on January 9, 2008 requiring any businesses in the city with 20 or more employees to contribute to the Healthy San Francisco program.

Employers have to spend a minimum health insurance, set up health reimbursement accounts for workers, or pay a fee to the city, reported the Los Angeles Times.

It’s driving health care costs up for just about every business — including restaurants.

Some restaurant owners estimate their health care costs will go up hundreds of thousands of dollars in just one year.

Now, many of the city’s most popular restaurants are starting to pass their health care costs on to customers. In one restaurant, a little message at the bottom of the menu reads:

“[Three and a half percent] service charge will be added to all checks for the San Francisco affordable health care legislation.”

Restaurants varied in the method and amount they increased prices for health care. Some are adding up to 4 percent on the entire bill, while others include an additional charge of $1 or $2 for every patron.

“The major players I talked to are all [raising prices]. It’s in the dozens. It’s a scary move, and only the bold are venturing into the territory.” said an owner of an Italian restaurant.

Joan Simon, a restaurant consultant, said the higher prices could also hurt the city’s tourism.

“What drives tourism partially is the reputation San Francisco has for dining. If we make it difficult for restaurants to keep affordable prices… then we’re going to see less tourism,” said Simon.

Will the increase in prices for health care turn away customers? It hasn’t so far.

“We haven’t noticed [the increase in price], so I guess it’s not that big a deal,” said one restaurant customer.

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