The San Francisco Health Care Security Ordinance (HCSO) requires that any employer (not meeting the small group exception) pay a predetermined dollar amount towards the health care of their employees. If you have any full-time or part-time employees working in San Francisco or you are contracted to do business in San Francisco, you are required to comply with the HCSO.
The following items are required by all covered employers with non-compliance resulting in a financial penalty:
Annual Reporting Form - Submission Required by April 30, 2012
Covered employers are required to complete and submit the Annual Reporting Form each year. The form is now available on the HCSO website for covered employers to complete and submit.
Annual Waiver Form - Required by Every Covered Employee Waiving Coverage
Covered employees waiving the health reimbursement benefit are required to complete the Employee Voluntary Waiver. Third-party vendor waiver forms (such as health carrier waiver forms) are not compliant. Employees must complete a new waiver every year.
Notice Requirement to Every Covered Employee
Covered employers must post the Official OLSE Notice in a common area in every work place or job site where a covered employee works. The notice comes in different languages so employers can comply with language requirements.
Penalties of Non-Compliance
Background Information on the HCSO
- $100 per employee per quarter when an employer does not make the required health care expenditure within five business days of the quarterly due date
- $500 per quarter for failing to maintain or retain accurate and adequate records
- $500 per quarter for failing to submit the annual reporting information
- $25 per day per covered employee for failing to post the OLSE Notice
Employers who engage in business within San Francisco and have 20 or more employees (50 or more employees for non-profits) are subject to this ordinance. This includes employers who are based outside of San Francisco or simply contract to do business within San Francisco. When counting total employees, you need to count all full-time and part-time employees and not just employees working in San Francisco.
Covered employers are required to pay a predetermined amount to its covered employees as reimbursement for their health care services. This may include paying a premium to a medical carrier, payment to the City Health Access Program/Healthy San Francisco, contribution to a HRA, FSA or HSA, cash reimbursement for health care services, or paying the health care provider directly for services.
For 2012, the Health Care Expenditure Rates are $2.20 per hour per employee for employers with 100+ employees and $1.46 per hour per employee for employers with 20 - 99 employees. Employees are eligible for this benefit if they work eight or more hours a week.
This ordinance has many areas of complexity so if you would like more information visit the HCSO website
or contact i2i benefits at 650-363-7237 or firstname.lastname@example.org.