San Francisco's Healthy San Francisco Ordinance (SFHCSO) is a landmark piece of legislation that has become the model for other cities and states across the country. The HCSO requires certain employers in San Francisco to provide health care benefits to their employees, or to pay into a city fund that supports public health care services. While HCSO compliance can be complex, it is essential for employers to understand the basics of compliance and the benefits it provides to their employees and their business.
Who is Affected by HCSO?
The HCSO applies to employers who have 20 or more employees and who are not already providing health care benefits that meet the ordinance's requirements. Employers who do provide such benefits must also comply with the HCSO's reporting and notice requirements.
The ordinance applies to a wide range of industries, including retail, hospitality, healthcare, and non-profit organizations. It also covers part-time and temporary employees who work at least eight hours a week in San Francisco.
HCSO Compliance Requirements
Employers who are subject to the HCSO must meet specific compliance requirements. These requirements include:
Providing health care benefits that meet the ordinance's minimum standards. These standards include coverage for preventative care, chronic disease management, and other essential health care services.
Reporting the health care benefits provided to employees on a quarterly basis. Employers must provide detailed information on the type and level of coverage provided to each employee.
Posting notices informing employees of their HCSO rights and benefits. These notices must be posted in a prominent location and be accessible to all employees.
Paying into the Healthy San Francisco Fund. Employers who are not providing health care benefits must pay into the city fund, which supports public health care services for San Francisco residents.
Benefits of HCSO Compliance
HCSO compliance provides several benefits to both employers and employees. For employers, compliance helps them attract and retain quality employees, improve employee morale, and reduce employee turnover. Compliance also helps employers avoid costly fines and legal disputes.
For employees, compliance provides access to quality health care services that they may not have otherwise. The HCSO requires employers to provide preventative care, chronic disease management, and other essential health care services, which can help employees stay healthy and productive.
How Insurance Can Help with HCSO Compliance
Many employers find it challenging to comply with the HCSO's complex requirements. However, insurance products can help employers meet their compliance obligations while also providing benefits to their employees.
For example, some insurance products provide coverage for the essential health care services required by the HCSO, such as preventative care and chronic disease management. Insurance products can also help employers meet their reporting and notice requirements by providing detailed information on the type and level of coverage provided to each employee.
Employers can also partner with insurance providers to develop custom solutions that meet their unique needs. This can include developing tailored health care benefit packages, creating wellness programs, and providing training and education to employees on the importance of preventative care.
Compliance with San Francisco's Healthy San Francisco Ordinance is critical for employers who want to attract and retain quality employees, improve employee morale, and reduce turnover. While compliance can be complex, it is essential for employers to understand the basics of compliance and the benefits it provides to their employees and their business.
By partnering with insurance providers, employers can develop custom solutions that meet their unique needs and help them meet their compliance obligations. With the right insurance products and support, employers can provide quality health care benefits to their employees while also meeting their HCSO compliance requirements.
Fundamental Care Limited Benefit Indemnity Plans offer an exceptional alternative solution to satisfy the San Francisco city option for the Health Care Security Ordinance (HCSO). Our plans provide comprehensive coverage with no medical restrictions or participant fees, ensuring that all full-time and part-time employees are eligible nationwide.
Plan Features Include:
Matching the 2023 HCSO spend requirement of $2.27 and $3.40 per hour based on employer size
Meets Minimum Essential Coverage as defined by the ACA
Eliminating the $850 CA individual mandate penalty
Medical Plan uses First health PPO Network of over 6,800 doctors and 11 Hospitals within 20 miles of San Francisco, including Dental & RX Coverage
Employee Assistance Program and Telemedicine Services included, allowing members to speak to a doctor and obtain prescriptions on the phone 24 hours a day at no cost
Adhering to the 90-day waiting period and other HCSO guidelines
1 filing to the City of San Francisco’s annual report
All full time & part time employees are eligible nationwide
No Medical restrictions
No Participant fees
No Pre-authorization required for any procedure
To learn more about Fundamental CareⓇ and SFHCSO Compliance or to receive a quote, please reach out to us HERE or contact Loran McBride and the team at 1Broker Insurance Services for information on the Alternative Solution to the San Francisco City Option.