San Francisco Increases Required Employer Health Spending

April 16, 2010 (PLANSPONSOR.com) – San Francisco employers will have to dig a little deeper in their pockets next year to pay for the required health care spending under the city’s controversial health coverage law.

A posting on the city’s Web site said employers with 100 or more employees in San Francisco will be required to spend $2.06 per hour per covered employee on health care beginning January 1, 2011, up from $1.96 in 2009.

Employers with between 20 and 99 employees will have to spend at least $1.37 per hour, up from $1.31. Employers with fewer than 20 employees are exempt from the requirement. 

The spending requirement applies to employees working at least eight hours per week.

Employers have a number of options to meet the ordinance’s demands including payment of employees' health insurance premiums and contributions to health savings accounts, and health reimbursement arrangements.

The 2006 law so far has withstood attempts to have it overturned.

More information is here.  The prior increase was in April 2009 (see SanFran Ups Health Care Law Payment).

Fred Schneyer
editors@plansponsor.com