Deloitte & Touche Discusses SB 2

Deloitte & Touche has posted a great article via Benefitslink regarding the Health Insurance Act of 2003 (SB 2) passed by the California legislature: “California Legislature Approves Bill Mandating Employer-Provided Health Coverage.” The bill has not yet been signed by Governor Davis. Interestingly enough, the article makes the point discussed here before, that the bill faces legal challenge under ERISA and that the issue will be decided by the “unpredictable Ninth Circuit.” The article also discusses the fact that the bill may face a legal challenge under the California state constitution that the bill in fact imposes a “fee” or tax on employers. Under the California constitution, a new tax must be approved by a two-thirds majority of the California Assembly and Senate – a level of support SB 2 did not achieve.