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Health Care Security Ordinance (HCSO)

 

 HCSO News

 

 

  • New! The 2013 HCSO Annual Reporting Form is now available. All Covered Employers are required to submit the online form by April 30, 2014 or face penalties of $500 per quarter.  Please find your Business Registration Certificate Number on the San Francisco Data website and review the Instructions before you begin.
  • FAQs on the HCSO and the Affordable Care Act. These FAQs reflect information available to date and are subject to change as new information or regulatory guidance becomes available.  
  • As of January 1, 2014 the health care expenditure rate for large businesses (100 or more employees total) are $2.44 per hour, and the rate for medium-sized businesses (20-99 employees total) is $1.63 per hour.
 

 Overview

 
  • Under the Health Care Security Ordinance (HCSO), all covered employers must meet the following obligations:

1. Satisfy the Employer Spending Requirement by making required health care expenditures on behalf of all covered employees (those who have been employed for more than 90 days and who regularly work at least 8 hours per week in San Francisco) at the following rates:

 Employer Size
(counting all employees, worldwide)

 2013 Expenditure Rate

2014 Expenditure Rate 

Large 

All employers w/100+ employees 

 $2.33 per hour paid

 $2.44 per hour paid

Medium

Businesses w/20-99 employees
Nonprofits w/50-99 employees

 $1.55 per hour paid

 $1.63 per hour paid

Small

Businesses w/0-19 employees
Nonprofits w/0-49 employees

 Exempt from coverage

 Exempt from coverage

2. Maintain records sufficient to establish compliance with the employer spending requirement.

3. Post an HCSO Notice in all workplaces with covered employees.

4. Submit an Annual Reporting Form to the OLSE by April 30th of each year. 

  • For details about these and other requirements, see our Frequently Asked Questions, review our other resources, or contact the OLSE at hcso@sfgov.org or (415) 554-7892.
  • Employees who believe their rights have been violated may submit an HCSO Complaint Form (PDF).
 

 Frequently Asked Questions

 

A. Overview
B. Covered Employers
C. Covered Employees
D. Calculating Required Health Care Expenditures
E. Making Required Health Care Expenditures
F. Contributing to Reimbursement Accounts
G. Contributing to the City Option
H. Employer Notice-Posting Requirement

I. Employer Recordkeeping Requirements
J. Employer Reporting Requirements
K. Health Surcharges
L. Retaliation Prohibited
M. Filing a Complaint
N. Penalties
O. HCSO and the Affordable Care Act

   
 

Download all FAQs (PDF)

 

 

 Email Updates

 
  • Sign up for our HCSO Email List to get occasional updates about the Ordinance.
 

 General HCSO Resources

 
 

 Annual Reporting

 
 

 San Francisco City Option (Healthy San Francisco and Medical Reimbursement Accounts)

 
  • One way that employers may comply with the HCSO’s spending requirement is by making contributions to the City Option on behalf of their covered employees. Depending upon eligibility, employees who receive these contributions will receive:
    • free or discounted enrollment in the Healthy San Francisco program, or
    • a Medical Reimbursement Account to pay for out-of-pocket medical expenses.
  • Upon contributing to the City Option, employers must provide their employees with a one-time Employee Health Care Payment Confirmation (PDF) (English) (Chinese) (Spanish).
  • To learn more about contributing to the City Option, visit www.sfcityoption.org or contact City Option Program Management at employerservices@sfcityoption.org or (415) 615-4492. 
 

 Health Care Surcharges

 
  • Businesses are neither required to, nor prohibited from, imposing surcharges on their customers to offset the cost of complying with the Health Care Security Ordinance. However, employers that elect to impose such surcharges must comply with specific requirements.
  • On May 1, 2009, the State Board of Equalization issued a Special Notice (PDF) regarding the taxability of such surcharges. To reach the State Board of Equalization, please call 800.400.7115.
 

 Upcoming Administrative Hearings and Hearing Officer Decisions

 
 

 Contact Us

 
  • Please email hcso@sfgov.org or call 554-7892 with any questions regarding your rights and responsibilities under the San Francisco Health Care Security Ordinance.
 
Last updated: 4/14/2014 11:10:42 AM