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Board OKs 2019 10-county survey amount; sets retiree subsidy benchmark at $672.08 monthly
Summary
The San Francisco Health Service Board approved the 2019 10-county survey amount — an employer contribution benchmark of $672.08 per month — to be used in retiree subsidy calculations, following an Aon presentation on methodology and trends.
The Health Service Board on March 8 approved the annual 10-county survey amount that the city charter requires be used to determine employer contribution benchmarks and retiree subsidies. Aon, the board’s actuary, said the aggregated methodology produced a monthly employer contribution of $672.08 for employee-only coverage for plan year 2019, a 3.53 percent increase from the amount used in 2018.
Aon principal Mike Clark told the board that the survey compiles employer contributions for employee-only coverage across California’s 10 most populous counties and applies multi-year trend adjustments when counties’ plan years differ from the SFHSS cycle. Clark said CalPERS and SFHSS plan-design information appear in the report for context but are excluded from the 10-county calculation.
The measure passed on a voice vote after Commissioner (speaker 2) moved approval and no public commenters opposed the motion. The board recorded unanimous support during the meeting.
Why it matters: the 10-county number is used primarily to calculate retiree subsidies; if the city’s premium contribution falls below the survey average, the charter requires the city to pay the difference. The Aon presentation emphasized that the survey’s role in active-employee rate-setting is limited compared with its historical use but remains a required benchmark under the charter.
Next steps: staff will incorporate the $672.08 figure into retiree subsidy calculations for plan year 2019 and include the result in upcoming rate materials.
