Lots of businesses and companies feel the impact of the San Francisco Security Health Care Ordinance, also known as the SFHCSO. For businesses large and small with employees in San Francisco, the demand for greater value is evident. Employers are always searching for ways to find the best of both worlds – what benefits employees want and the best benefit offering for the business. At Boon, we provide a MEC health insurance offering with a national PPO network that is an alternative to the city option.
The SFHCSO and Its Impact
The SFHCSO is a requirement for all employers with 20 or more employees working in San Francisco that mandates a minimum healthcare spend per employee. It’s often confused with the Affordable Care Act as a healthcare mandate, but while they both impose employer requirements relating to healthcare, there is a key difference between them. The Affordable Care Act is an offer requirement, whereas the SFHCSO is a spend requirement.
The SFHCSO is a per hour worked spend requirement that must be put towards a healthcare benefit like medical, dental, or vision care. Employers have the option to send the amount owed for each employee to the City of San Francisco where it is placed in a city-sponsored medical reimbursement account. The spend requirement directly increases the overall labor costs, but also has an indirect cost as to the timing required to ensure ongoing compliance. With options and choices available, there is an opportunity for greater value.
MEC Health Insurance vs. A Medical Reimbursement Account
Why should employers choose Boon’s alternative benefit solution over sending the money owed the City of San Francisco? It comes down to the differences between a medical reimbursement account and MEC health insurance with the added benefit of a PPO network. Ultimately, it comes down to choice.
When employers contribute to the City of San Francisco option, a medical reimbursement account is set up for each employee. It’s important to remember that a medical reimbursement account is not the same thing as health insurance. Using the City MRA option, an employee will likely be asked to pay the full price of a healthcare provider visit at the time of service. The employee must then submit a request and wait for the City to reimburse them for that visit. In addition to the time required for reimbursement, an employee also feels an impact with the cost of the provider services. Without the benefit of a PPO network, an employee will likely pay the full cost for each healthcare service, which can be very expensive, especially for low-paid works.
Boon offers an alternative to the City MRA option with a MEC health insurance offering that includes a PPO network. Our SFHCSO solution is customized to meet the spend requirements of SFHCSO compliance and satisfies the minimum essential coverage mandate of the Affordable Care Act and California’s individual mandate penalty. This benefit option includes medical coverage, dental, vision, and telemedicine and employees have access to the benefit of a PPO network for their provider visits. Employers can enjoy the comfort of compliance and value all for the same cost as the city option.
A Better MEC Health Insurance Option for San Francisco
There’s no denying that the current market poses a lot of challenges for employers. Everything has gotten more expensive – so value is of the utmost importance. Business spending is inevitable, so why not offer a benefit solution that pulls double duty? Employee benefits do more than provide your valued workforce with vitally important healthcare, they can also act as a recruitment tool. Your workers enjoy the security of knowing they have healthcare coverage, while the business gets compliance with the SFHCSO and a reduced tax burden.
Boon proudly offers an alternative benefit solution. A MEC health insurance plan that satisfies the SFHCSO and gives employees flexibility and options with their healthcare.
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