Frequently Asked Questions

What is the New York City Health Care Security Act? ƒ It’s a new city law that will ensure that employers in New York City contribute to the cost of their employees’ health care

What employers will be covered? ƒ In its pilot phase, the law will apply to large grocery and food retail stores in the city ƒ Grocery stores with 50 or more employees or other retail stores with 12,500 square feet or more of food will be covered ― this means supermarkets, gourmet groceries, and “big box” stores that sell food ƒ Approximately 72% of these businesses currently help pay for health care for their 21,000 employees and their families ƒ Approximately 28% currently do not, leaving their 6,000 employees and their families unable to afford health care

How will it work? ƒ Employers will be required to contribute approximately $2.50-$3.00 for health care for each hour that their employees work ― this is the average amount that employers in New York’s grocery industry that provide health care are currently contributing ƒ Employers will have broad flexibility in how they make the contributions ― everything from paying it into employee health accounts to using it to reimburse employee health bills to making contributions to community health clinics

Why was a new law needed? ƒ In industries where employers have traditionally helped pay for their employees’ health care, growing numbers are not ƒ This puts pressure on all employers to cut back on health care contributions in order to compete ƒ And employers who don’t help pay for their employees’ health care are shifting to city taxpayers and the public health care system the cost of caring for their employees ƒ Columbia University researchers estimate that New York City’s government, taxpayers, and public health system spend more than $612 million each year on care for uninsured workers and their families

Why start with the grocery industry? ƒ The grocery industry makes sense for a pilot program because it is a sector where it has long been the industry practice to help pay for employees’ health care ƒ But that standard is at risk as more grocery retailers ― especially gourmet groceries and “big box” food retailers ― are starting not to pay for health care ƒ And leading employers in the industry support the new law including Fairway, Gristedes, D’Agostinos, Key Food, Pathmark, and Stop & Shop, and the industry trade association, the Food Industry Alliance, does not oppose it

Can employers really afford to help pay for their employees’ health care? ƒ The fact that 70% of grocery employers are currently helping pay for their employees’ health care at the level specified in the law demonstrates that doing so is economically feasible

Have similar laws been enacted elsewhere? ƒ Suffolk County on Long Island enacted nearly identical legislation in October 2005 ƒ Similar legislation was enacted in Maryland in January 2006

Does the city have the legal power to do this? ƒ Under state law, the city can regulate businesses operating in the city ƒ While the federal Employee Retirement Income Security Act of 1974 (ERISA) limits the degree to which cities and states can regulate health insurance, it does not prevent them from requiring employer expenditures

Who is supporting the New York City Health Care Security Act? ƒ Leading grocery industry employers including Fairway, Gristedes, D’Agostinos, Key Food, Pathmark and Stop & Shop ƒ Public health and civic leaders including: o Bruce Vladeck, Ph.D., former director, U.S. Dep’t of Health and Human Services Health Care Financing Administration o Stanley Brezenoff, President and CEO, Continuum Health Partners o Pamela S. Brier, President and CEO, Maimonides Medical Center

2 o Allan Rosenfield, MD, Dean, Mailman School of Public Health, Columbia University o Peter Slocum, Vice President of Advocacy, American Cancer Society o David Jones, President and CEO, Community Service Society o Lorraine Cortés Vázquez, President, Hispanic Federation o Monica Foster, Chairperson, New York State Association of Minority Contractors o Dr. John E. Hiemstra, Executive Director, Council of Churches of the City of New York o Rafael Lantigua, MD, Chairperson, Alianza Dominicana o Cesar A. Perales, Esq., President and General Counsel, Puerto Rican Legal Defense Fund o Rabbi Joseph Potasnik, Executive Vice President, New York Board of Rabbis o Shin Son, Executive Director, Korean Community Services of Metropolitan New York ƒ The campaign was organized by New York Jobs with Justice ƒ The Brennan Center for Justice at NYU Law School advised the City Council in designing the legislation and provided legal and policy support for the campaign

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