Rules Committee clears exemption allowing SF Health Service System to finalize New York Life contract

The Rules Committee voted Oct. 27 to recommend that the Board of Supervisors approve an ordinance narrowly exempting the San Francisco Health Service System (SFHSS) basic life and long‑term disability insurance contract with New York Life from certain local labor and employment code documentation requirements.

Supervisor Dorsey, sponsor of the measure, and SFHSS staff said the exemption is necessary because New York Life — a large national insurer — cannot document compliance with the Minimum Compensation Ordinance and Healthcare Accountability Ordinance in the way the ordinances currently require. Michael Visconti, contracts administration manager for SFHSS, said the RFP process ran from December 2024 through April 2025, that the recommended vendor provides roughly $2,000,000 in annual savings and a five‑year fixed rate guarantee through 2030, and that the exemption would preserve $1,970,000 in annual savings while maintaining benefits required by 54 memoranda of understanding.

Visconti said deputy city attorneys advised that, because no administrative waiver process exists for this type of employer‑paid benefit contract, board‑level legislative action is the lawful path. SFHSS also reported separately negotiated voluntary plans are employee‑paid while the basic life and LTD benefits are employer‑paid and historically part of collective bargaining protections.

There were no public speakers on the item. Supervisor Dorsey moved to recommend the ordinance do pass and send it to the full Board with a positive recommendation; the motion passed without objection. The item will proceed to the Board for consideration.