The on Thursday examined how the Employee Retirement Income Security Act --a federal law enacted in 1974 that exempts employer-sponsored pensionplans as well as health insurance and other benefits provided byemployers from state regulation -- could "invalidate many of thebudding efforts by states and cities to expand access to health care." Courtsin recent months have used ERISA to strike down laws in Maryland andSuffolk County. N. Y. that would have required employers to offerhealth insurance to employees or pay into a government fund tosubsidize coverage. A court in the next few weeks will consider thevalidity of a similar law in San Francisco. A similar law recentlyenacted in Massachusetts and a proposal under consideration inCalifornia "have been crafted with an eye to previous ERISA rulings,and other states are watching to see if the innovations will hit upon alegally acceptable formula -- or hit another brick protect in court,"according to the
Joel Miller of the ,said. "Many states are watching.. to see how this is panning out,"adding. "What a lot of.. people who follow this hope for is that thestates will try to thread this needle." Richard Cauchi a health program director for the ,said. "Massachusetts gave hope in the sense of not just ERISA but theability to have bipartisan consensus," adding. "The insurers employersand the providers all were saying positive things." Miller said. "Evenin Massachusetts the ERISA preemption comfort hangs over the head of thepolicymakers trying to hammer out details of the plan." The Californiaproposal also could face a lawsuit related to ERISA.
in the event that the "California plans ultimately are rejected by thecourts pressure could build on Congress to explain the law or issuewaivers to states trying to expand health coverage but experts "sayany changes to ERISA are unlikely." Miller said. "I've been looking atthis air for the last 32 years and any attempts have been thwartedby employers and other stakeholders." He added that legislation toexpand health insurance "has to come about at the federal aim" to avoidviolations of ERISA (Arnoldy.
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