Recently, the 2023 San Francisco Health Care Security Ordinance (SF HCSO) expenditure rates were released, which are increased annually and vary based on employer size.
For 2023, medium-sized covered employers must spend $2.27 per hour payable (up to a maximum of $390.44 per month, based on a maximum of 172 hours payable) and large covered employers must spend $3.40 per hour payable (up to a maximum of $584.80 per month, based on a maximum of 172 hours payable) on their covered employees’ health care.
The new 2023 rates, as compared to the 2022 rates, are outlined below:
| 2023 Rates | 2022 Rates | |
| Small Employers (0-19 employees) | Exempt | Exempt |
| Medium Employer (20-99 employees) | $2.27/hour (max $390.44/month) | $2.20/hour (max $378.40/month) |
| Large Employer (100+ employees) | $3.40/hour (max $584.80/month) | $3.30/hour (max $567.60/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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Disclaimer: This content is intended for informational purposes only and should not be construed as legal, medical or tax advice. It provides general information and is not intended to encompass all compliance and legal obligations that may be applicable. This information and any questions as to your specific circumstances should be reviewed with your respective legal counsel and/or tax advisor as we do not provide legal or tax advice. Please note that this information may be subject to change based on legislative changes. © 2022 Sequoia Benefits & Insurance Services, LLC. All Rights Reserved
