Board approves amended Health Care Security Ordinance after heated public hearing

President Chu and the Board of Supervisors voted to approve amendments to the Health Care Security Ordinance (HCSO) intended to curb misuse of employer-collected surcharges and to change how employer-funded Health Reimbursement Arrangements (HRAs) are treated. Supervisor Cohen moved the amendments and President Chu seconded; the measure passed 6-5 on a recorded roll call.

The ordinance amendments require clearer employee notice about HCSO rights, address restaurant surcharges that advertise health benefits, and create a 24-month rolling accrual approach intended to give employees continued access to funds across calendar years. Supporters called the package a pragmatic compromise to expand worker access while limiting the risk of employer layoffs.

"We are going to be legislating notice provisions," President Chu said during final remarks. "We're going to be addressing the surcharge situation... and the so called January problem. I don't think that's going backwards." He urged colleagues to pass the changes and backed technical amendments offered on the floor.

Labor groups, immigrant-worker organizations and several health-care providers opposed the amendments, saying they leave an opening for employers to restrict meaningful coverage. "These HRAs are the cheapest form of health care under our health care security ordinance," Connie Ford of the San Francisco Labor Council said during public comment. "Any time there is an incentive for the employer to get back the money, they will look for a way to get back the money." Tim Paulson, executive director of the San Francisco Labor Council, told…