San Francisco announced last week the Health Care Spending Ordinance (HCSO) contribution rate for 2013. The HCSO requires the majority of employers doing business in San Francisco to contribute to the cost of healthcare for their employees who work in San Francisco.
Effective January 1, 2013, the HCSO contribution rate for large employers (100 or more employees) is $2.33 per hour worked in the city and county of San Francisco (for reference, we’ll refer to this as “the City”). For medium-sized employers (20-99 employees), the rate is $1.55 per hour worked in the City. This is an increase from $2.20 and $1.46, respectively, per hour worked in 2012. Small employers with less than 20 employees are exempt from this requirement.
In order to meet its health care expenditure obligation, an employer may make payment to the City, purchase health insurance coverage for covered employees, pay for the cost of health care services on a self-insured basis, or a combination of the above.
There’s more information about the HCSO requirements at : http://sfgsa.org/index.aspx?page=418
Lockton also offers an Employer’s Guide to the San Francisco Health Care Security Ordinance, available from your Lockton account service team.