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.