Board amends Health Care Security Ordinance to close HRA loophole; three-year phase-in adopted

The San Francisco Board of Supervisors on June 10 adopted amendments to the Health Care Security Ordinance intended to close a longtime health reimbursement account (HRA) loophole and move more workers toward standard health coverage.

Supervisor Campos, who introduced the amendments with Supervisors Breed and Farrell, said the change was overdue. "[T]hese amendments ... finally lead to the closure of a loophole in the health care security ordinance that has essentially, for the last few years, left more than 26,000 workers in San Francisco without access to healthcare," Supervisor Campos said during the meeting.

Why it matters: sponsors and labor advocates said HRAs—employer-run accounts that pay limited medical expenses—have kept workers from enrolling in mainstream insurance under the Affordable Care Act. Supporters argued closing the loophole will expand access to comprehensive coverage; small-business advocates and the mayor sought a phased approach to reduce immediate financial disruption.

Key provisions and…