SAN FRANCISCO (KCBS) – San Francisco supervisors have approved a key change to the city’s Healthy San Francisco program that could end up costing business owners.

City law requires employers to provide health insurance, contribute to a city fund, or set up a health reimbursement account for employees.  The change to the law would would force local employers to keep health reimbursement accounts open for workers for 18 months after they leave their jobs. It’s something that Supervisor David Campos said is only fair.

KCBS’ Barbara Taylor Reports:

“The average night at a hospital in San Francisco is $20,000,” said Campos.

Supervisor Mark Farrell said he wants to close the loophole, but not in this fashion.

“Our report that we’ve received in city hall about potentially losing up to 400 jobs here in San Francisco, to me, is unacceptable,” said Farrell.

The business community said the change could cost $50 million a year.

Although the legislation passed on a 6 to 5 vote, it’s on track for a veto by Mayor Lee, who said that he has a more reasonable plan to get the loophole closed.

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