Health Service System approves 2023 health plans and contribution rates in California

The San Francisco County government meeting on July 4, 2025, focused on the approval of health service system plans and contribution rates for the upcoming calendar year. This ordinance, sponsored by Supervisor Chan, outlines the financial contributions from employers towards health premiums for both active employees and retirees.

The health service system, which serves four employers including the city and the community college district, reported a 3.1% increase in the average contribution rate for health plans, bringing the total to $780.76 per employee. This increase is notably lower than the national average of 4% over the past five years, as indicated by the Kaiser Family Foundation's employer health benefit survey.

The projected aggregate cost increase for the city alone is 3.19%, which includes contributions from employees, retirees, and the city itself. Specifically, the medical-only cost increase is estimated at 2.98%. The health service system provides a range of coverage options, including medical, vision, dental, life insurance, and long-term disability, with various plans available to meet the diverse needs of its members.

Significant changes include a 15% increase in dental plan rates and a 5% increase for the basic vision plan, alongside an 8.7% increase for the premier vision plan. However, the health service board also reported a 22.3% decrease in life insurance and long-term disability plans due to favorable plan experiences, with no changes to the benefits offered.

These adjustments reflect the county's ongoing commitment to providing comprehensive health coverage while managing costs effectively. The meeting underscored the importance of maintaining affordable healthcare options for San Francisco's workforce and retirees, ensuring that residents continue to receive necessary support in their health and well-being.