New York City Council passes coverage mandate
By Jerry Geisel, Business Insurance
August 17 15:43:00, 2005
 

NEW YORK - Legislation overwhelmingly approved Wednesday by the New York City Council would require grocery stores and other retailers that sell groceries to make substantial contributions toward their employees' health insurance coverage costs.

The legislation, approved on a 46-1 vote, would apply to all grocery stores with at least 35 employees and to all other retail stores with at least 10,000 square feet of food products.

Covered employers would be required to contribute an amount equal to the prevailing employer contributions that New York City grocers now pay toward their employees' health insurance coverage. New York would conduct surveys to determine this amount. The Brennan Center for Justice, a public policy think tank in New York, estimates that amount currently is about $2.50 to $3.00 per hour per employee.

Employers covered by the mandate would have broad flexibility in how they could make their contributions. For example, employers could choose to contribute the funds to employees' health savings accounts or to reimburse employees for their medical claims.

It is not known if New York Mayor Michael Bloomberg will sign the bill, believed to be the first of its kind. A spokesman for the mayor's office did not return a call for comment.

Paul Sonn, deputy director of the Brennan Center's Poverty Program, said he believes the measure was drafted in such a way that it could survive legal challenges that the federal Employee Retirement Income Security Act pre-empts the measure.

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