A San Francisco Medical Reimbursement Arrangement (SF MRA) is a program that allows employers to reimburse employees for healthcare expenses. The core function involves the employer contributing funds to cover the employee’s out-of-pocket medical costs, such as deductibles, co-pays, and other eligible healthcare services. For instance, an employee might incur a $200 co-pay for a specialist visit; the employer can then reimburse this amount through the SF MRA, up to the plan’s specific limits.
The primary incentive for an employer to implement an SF MRA stems from the potential cost savings and enhanced employee benefits. By offering this type of reimbursement, employers can often reduce their overall healthcare expenses compared to traditional group health insurance plans, especially for smaller businesses. Furthermore, an SF MRA can serve as a valuable recruitment and retention tool. It enables employers to provide employees with financial assistance for healthcare needs, contributing to improved employee satisfaction and loyalty. It also assists in attracting potential job candidates by showcasing a commitment to employee well-being. In addition, it assists employers to navigate mandates under the San Francisco Health Care Security Ordinance.
