San Francisco to Increase Health Care Spending Requirement

July 18, 2011 ( - Beginning on January 1, 2012, employers in San Francisco with 100 or more employees will be required to spend $2.20 per hour per covered employee on health care, up from $2.06 in 2011.

According to Business Insurance, employers with 20 through 99 employees will have to spend at least $1.46 per hour, up from $1.37, city officials announced last week. Employers with fewer than 20 employees are exempt from the requirement.  

Business Insurance explained that the spending requirement that applies to employees who work at least eight hours per week can be satisfied in various ways, including payment of employees’ health insurance premiums as well as contributions to health savings accounts and health reimbursement arrangements.   

The law has withstood attempts to have it overturned (see Justices Stay out of SF Health Law Controversy).