California Legislature Close to a Voting for Costly Healthcare “Play or Pay” System for Business

The California Legislature is currently debating a new law mandating employer-funded health care. This proposal requires California employers to offer health care coverage to employees and their dependents, at a yearly cost of at least $2500 per individual and $7000 per family. It is expected that Employers will most likely be required to pay at least 80% of this cost. The debate in the conference committee centers around creating a "play or pay" system, where employers are mandated to provide health care for their employees and their dependents, or pay into a state run system. Some of the committee members authored mandatory health care legislation early this year, so it appears certain that the committee will approve some form of proposal and send it to the Assembly and Senate floors. The National Restaurant Association estimates that a health care mandate will cost California employers at least $6 billion a year, at a time when workers’ compensation premiums, unemployment taxes, energy, and other business costs are at record highs. Source:http://www.fbworld.com/articles/gmC00F.htm