Pretax savings and funding for future health care expenses

Health Reimbursement Arrangement (HRA)

HRA Account Log In

The Health Reimbursement Arrangement (HRA) is a tax-free, employer-funded account that allows employers to reimburse employees for out-of-pocket medical expenses. Combining a higher-deductible health insurance plan with an HRA plan can lower insurance premiums and reduce overall costs for employers. Furthermore, plan designs are flexible to meet unique employer and employee needs. Funds are only available as accrued, and unused funds can be rolled forward each year or forfeited back to the employer depending on the benefits strategy.

BeneFLEX provides general HRAs, Limited HRAs as well as the specialized Health Care Security Ordinance (HCSO) HRA.

BeneFLEX’s Solution for the San Francisco HCSO

Why Choose the BeneFLEX HCSO HRA?

The HCSO HRA is specially designed to meet the specific requirements of the HCSO. The BeneFLEX HCSO HRA provides a better solution than the City’s Healthy San Francisco Program or other medical reimbursement plans because:

Unused funds are forfeited back to the employer.
The cost and liability are lower than other medical reimbursement plans.
Administration fees are reduced from the covered employee’s expenditure.

What is the HCSO?

The HCSO requires covered employers located in and outside the geographic boundaries of San Francisco with a San Francisco business registration certificate and 20 or more employees to make a quarterly Health Care Expenditure to, or on behalf of, each of its covered employees. A covered employee:

Has been employed by the employer for at least 90 calendar days.
Works at least 8 hours per week in San Francisco.

Who is exempt?

Employers with less than 20 employees or non-profit organizations with less than 50 employees are exempt from HCSO requirements.

The following employee classes are excluded from coverage or eligibility:

Those who sign a voluntary waiver form stating that they have other employer sponsored coverage.
Managers and supervisors who earn more than $80,397 annually ($38.65 per hour) in 2010.
Those who are covered by Medicare or TRICARE.
Those who are employed by a non-profit for up to one year as trainees.
Those who receive health care benefits under the San Francisco Health Care Accountability Ordinance.

Required Expenditures

Health care expenditures must be made available by the 30th day of the month following the last day of each calendar quarter.

Effective January 2010:

Employers with 100+ employees must pay $1.96/hour.
Employers with 20–99 employees must pay $1.31/hour.

For detailed information on the HCSO, including record keeping requirements and enforcement policies, employers should contact the Office of Labor Standards Enforcement at (415) 554.7892, or visit their Web site. Employers can also access additional information in the HCSO Frequently Asked Questions document.