County Businesses Raise Red Flag Over Proposed Health Care Fee

A county task forced focused on finding ways to provide health care insurance to the uninsured have raised red flags for local businesses who, under the task force’s proposal, would be required to contribute to a county-run insurance program.

Last Friday, according to an article in the San Mateo Daily News, the San Mateo County Blue Ribbon Task Force on Adult Healthcare Expansion, issued its proposal to create a plan that would cover county residents who do not qualify for state-funded Medi-Cal insurance but make too little to purchase adequate insurance on the open-market.

The task force, comprised of 36 representatives from government, hospitals, labor, businesses and nonprofit sectors, has suggested that county employers contribute an as of yet unknown amount of money toward such a program. Not surprisingly, the lone business representative on the task force dissented from such a proposal.

"They're very concerned about the current economic environment," said David Amann, who represented the Redwood City Chamber of Commerce on the task force. "They're worried an additional cost at this point in time could really affect whether they can come out on the other side of this recession."

The new proposed insurance program would be administered by the Health Plan of San Mateo, which runs the county's Medi-Cal and children's health programs, if the recommendations are approved May 20 by the San Mateo County Board of Supervisors – so long as a funding source can be identified – and that’s where a local business tax would come in.

The county would be unable to levy such a tax itself, however, so each of the county’s 20 cities would be forced to place a measure on local ballots to establish such a levy.

That’s where this proposal, with businesses opposition, will likely run into the ground. But, according to Supervisor Jerry Hill, "There always seems to be some negativity when government is moving the agenda.”

In this case, the negativity is coming from an anxious business community struggling with a slumping economy. The task force is scheduled to reconvene in October to discuss financing options.