Much ERISA About Nothing

While conservatives are crowing about a ruling against San Francisco's health insurance plan and while one Republican website is praising the Court (and State Senate Democrats) for slowing down the Assembly-backed plan to provide health insurance to millions of Californians, the ruling may be much ado about nothing.

The Assembly picked two top ERISA lawyers to draft the Nunez/Perata bill language. And while no one ever said it was easy to satisfy the federal law requirements (hence the hiring of the experts), the Legislative bill drafters are confident they have drafted legislation that will meet court tests.

Some on the right suggest ERISA prevents states from doing anything to expand employer-based health plans. That's not the case at all; the judge in this case even suggested some alternatives, such as tax credits. Other judges have picked apart state-passed health care legislation. For example, in Maryland, the legislation was targeted at Wal-Mart. And the court was none too pleased about that.

But the states, led by California, are moving to fill the void left by inaction on the national scene by Kevin Sack the other day). ERISA is a hurdle, but in California, it's one that can be overcome.

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