Here at the Coverage Corner, we’ve been keeping an eye on universal health care and universal health insurance mandates around the country.
In California, Healthy San Francisco is now in full swing. It’s a program providing health care for every resident in the city. But like all universal care, the San Francisco initiative comes with a hefty price tag.
So who should pay for residents’ care?
As the current law states, businesses are responsible for as much as 20 percent of the cost. Any employer with more than 20 employees is required to contribute a minimum amount for the program.
Restaurant owners say they’re particularly hurt by the mandate. They point out the health care contribution adds an unfair burden to their mounting labor costs, reported the San Francisco Business Times.
That’s why restaurateurs are passing the costs on to their customers — with added health care service charges on their bills.
The Golden Gate Restaurant Association is also suing the city, citing the employer mandate is illegal.
The Restaurant Association also has supporters in the lawsuit — including the National Federation of Independent Business, the California Chamber of Commerce, and the National Association of Manufacturers.
Instead of employer contributions, some argue, Healthy San Francisco should be funded by a small sales tax increase.
The suit is still pending in the U.S. Court of Appeals, but they might issue a ruling as soon as April 17.
So who should pay for universal health care? Stay tuned.