The 2022 San Francisco Health Care Security Ordinance (SF HCSO) expenditure rates were recently released. SF HCSO expenditure rates increase annually and vary based on employer size.

For 2022, medium-sized covered employers must spend $2.20 per hour payable (up to a maximum of $378.40 per month, based on a maximum of 172 hours payable) and large covered employers must spend $3.30 per hour payable (up to a maximum of $567.60 per month, based on a maximum of 172 hours payable) on their covered employees’ health care. 

The new 2022 rates, as compared to the 2021 rates, are outlined below:

2022 Rates2021 Rates
Small Employers
(0-19 employees) 		Exempt Exempt 
Medium Employer
(20-99 employees) 		$2.20/hour
(max $378.40/month) 		$2.12/hour
(max $364.64/month) 
Large Employer
(100+ employees)		$3.30/hour
(max $567.60/month) 		$3.18/hour
(max $546.96/month) 

As a reminder, SF HCSO requires covered employers to spend a minimum amount on covered employees’ healthcare. For more information on who qualifies as a covered employer, which employees are covered by the ordinance, and other employer obligations under the SF HCSO regulations, we recommend employers review the SF HCSO website and accompanying regulations.

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Emerald Law – Emerald is a Senior Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Emerald enjoys stand-up comedy, live music, and writing non-fiction.