Labor Unions, Small Business Owners & Health Professionals Join Together to Reach Consensus on Closing Health Reimbursement Account Loophole

10/5/11— Mayor Edwin M. Lee today announced that he has asked labor unions, small business owners, low-wage workers, and City officials to come together to develop a consensus strategy to close a loophole in San Francisco’s Health Care Security Ordinance related to Health Reimbursement Accounts (HRAs).

“Working in collaboration with organized labor, small business owners, Department of Public Health staff and our City’s elected leaders, we are determined to find a consensus solution that will close the loophole,” said Mayor Lee. “I am confident that by working together we can increase people’s access to health care and protect jobs. We will work in collaboration with all parties and resolve this problem.”

“I am committed to continuing the collaborative effort to ensure health care access to workers while protecting jobs,” said Board of Supervisors President David Chiu. “The loophole must be closed, but it must be closed responsibly.”

Joining Mayor Lee in this consensus building effort is Board President Chiu joined by Supervisors David Campos, Carmen Chu, Malia Cohen, Sean Elsbernd, Mark Farrell, Jane Kim and Scott Wiener and the San Francisco Labor Council leadership and the Alliance for Jobs including Local 261, SEIU United Healthcare Workers, Local 22, UFCW, SF POA, ILW Local 6, DSA, IBEW 1245, and Local 798, Local 21, Municipal Executives Association and Municipal Attorneys Association.

Additionally many representatives from the City’s small business community including representatives from the San Francisco Chamber of Commerce will participate, as will the San Francisco Department of Public Health and representatives from the Healthy San Francisco program.

This group is similar to the group of public sector unions and businesses that crafted a pension proposal, which was unanimously supported by the Board of Supervisors earlier this year. They will discuss various proposals to close the HRA loophole.

Mayor Lee seeks a consensus solution that will close the loophole without imposing a half-billion dollar liability on the City’s small businesses over the next ten years, and potentially leading to the elimination of 460 private-sector jobs, as reported by the Controller’s Office.

During the discussion at the Board, several Supervisors expressed a desire to keep working toward a solution that closes the loophole, provides access to meaningful health care, and protects jobs at our City’s small businesses. This group is the venue for this continued discussion, and Mayor Lee will welcome participation from all members of the City’s elected leadership. This group will convene next week.