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Restaurant assoc. sues over health care

14.11.2006 07:55 Insurance News

A restaurant association has sued to block the city's plan to provide health care coverage to uninsured residents, saying federal law prohibits local governments from requiring employers to pay for insurance.

The ordinance, scheduled to take effect next July, requires that businesses with 20 or more employees pay for their staff's health coverage.

The suit filed by the Golden Gate Restaurant Association seeks an injunction against enforcement of the ordinance.

"Health care is everyone's responsibility, not just the employers'," the association's executive director, Kevin Westlye, said in a statement. He said his group has tried for a year to find an alternative to employer funding.

The ordinance is designed to cover 82,000 uninsured San Franciscans and is expected to cost $200 million a year. Costs will be paid by employers and taxes.

The city attorney's office said the ordinance complies with federal law.

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