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Using an HRA to Comply with San Francisco's HCSO Requirements - Zane Benefits Publishes Information
Date:12/3/2012

(PRWEB) December 03, 2012

Zane Benefits, the leader in Defined Contribution Healthcare, Health Reimbursement Arrangements (HRAs), and Private Health Exchanges, today published an article about using HRAs to comply with San Francisco's Health Care Security Ordinance (HCSO).

The San Francisco Labor Standards Enforcement allows an (HRA) to be used to meet the HCSO requirements of San Francisco. In this article, we will cover using a HRA to pay for HCSO Health Care Expenditures (HCEs).

One of the many benefits of using an HRA to comply with San Francisco’s HCSO ordinance, compared with using a traditional group health insurance plan, is that the employer may recoup unused expenses after an employee leaves the company.

In fact, among employers that used HRAs in 2011 to satisfy the HCSO requirements, just 17% of the nearly $66 million was actually reimbursed to employees, according to a report issued by the city's Office of Labor Standards Enforcement.

Since 2011, these new provisions have been put into place for businesses wishing to use an HRA to pay for employee HCEs:

(1) The contributions must be reasonably calculated to benefit the employee;

(2) The contributions must remain available to the employee for a minimum of twenty-four months from the date of the contribution;

(3) The employee must receive a written summary of each co
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