Recent Court Ruling Slows California Healthcare Reform

A recent court ruling may affect California's efforts to reform their healthcare system. According to the Christian Science Monitor, a federal court recently decided that it is illegal for state and local governments to require employers to contribute a minimum amount towards health coverage for their employees. These "employer mandates" violate the Employee Retirement Income Security Act (ERISA), which prohibits state and local governments from dictating how employers develop their employee benefit plans. Look for ERISA to play an increasing role in how California and other states develop plans for healthcare reform.