In January of 2008, the City of San Francisco instituted an ordinance which requires all employers with at least 20 employees to establish health benefits for any employee that works in the City of San Francisco. To meet the City’s benefits requirement, ASi has developed HRA plans which provide health benefits to employees, satisfies the San Francisco Health Care Ordinance, and minimizes the financial impact on employers.
In accordance with the San Francisco Health Care Security Ordinance, an HRA account will be established for each employee which meets the minimum required hours worked and a balance will be loaded into each employee’s HRA account, determined by the number of hours paid to the employee during each applicable quarter of the plan year. Once an account is established, an employee may submit claims to ASi to be reimbursed for eligible out-of-pocket expenses they incur during the plan year.
An HRA offers flexibility to the employer and can be customized to offer benefits, not only to meet the City ordinance, but may offer expanded benefits based on the employer’s needs.
Employers that choose to offer an HRA to their employees will only pay for claims actually incurred, therefore avoiding paying for a benefit plan which may never be used.
Here is how the San Francisco HRA works:
- At the end of each quarter, a file of all eligible employees will be submitted to ASi indicating how many hours each employee was paid during the quarter.
- Based on the number of hours paid, ASi will establish an HRA account for each employee and load the earned balance.
- Each employee with an HRA account will then be able to submit receipts to ASi for expenses incurred during the plan year to be reimbursed for eligible out-of-pocket expenses.
- Once a claim is processed, a check will be generated and the employer will be notified of the amount of the claim. At that time, the employer will send the necessary funds to ASi to cover the amount of the claim. Once payment is received from the employer, the check will be sent to the employee to complete the reimbursement process.
If you would like more information about San Francisco HRAs, click here.