Ensure Your Employees Use Their Health Benefits

Prevent Account Closures by Contacting Employees

Effective March 1, 2023, a new policy goes into effect. The City and County of San Fracisco will begin closing accounts that have not been used for three years or more starting on April 2026.

Together, let’s ensure that everyone who has these benefits, uses them, and maintains their health and wellness. You can help by contacting your employees to ensure they finish the enrollment process.

Here is a sample flyer that you can print, post, and/or send to your employees.

What Can Employers Do?

Download Enrollment Reports

Contact SF City Option (email or phone)

Contact Your Employees

You can find out which employees have enrolled and which have not by downloading enrollment reports available in your Employer Portal after January 25, 2023. You can also email a request to employerservices@sfcityoption.org or call us at 1(415) 615-4492.
We will fulfill your request within three weeks.

Frequently Asked Question

The San Francisco Health Commission approved a policy in January 2022 to permanently close employee accounts that have not been used for a 3-year consecutive period. Any funds in those account will also be permanently reverted to the City and County of San Francisco. This policy is consistent with existing state law (Government Code 50050).

The new policy is effective March 1, 2023. That means the SF City Option program will begin tracking accounts that have had no activity for a three-year consecutive period beginning March 1, 2023 and beyond. The earliest any accounts could potentially be permanently closed is April 2026.

Current and former SF City Option employees who have a SF Medical Reimbursement Account (MRA), and any employee that has contributions from their employer but hasn’t yet opened their MRA.

SFCO will be sending email and/or letter communication to your current and former employees starting December 15 through January 2023 to notify them of the policy change that could potentially close accounts beginning in April 2026.

Employees will have 3 years to either set up an MRA or file a claim for reimbursement in an existing account. Either of these actions will reset the clock on an employee’s 3-year period. In addition, active employer contributions keep the account from permanent closure.

This policy was adopted by the Health Commission as a reasonable way to handle old accounts that is consistent with state law.

The SF City Option program began in 2008 and has never permanently closed any employee accounts in its 14-year history. Current and former employees have always been able to access their funds, regardless of how much time has passed since they made a claim. Over time, as the SF City Option program has grown, the number of old, unused accounts has also grown.

State law (Government Code 50050) has authorized local governments to sweep unused funds after a 3-year period of no activity since 1949.

By the end of 2023, we are launching a self-service feature in the Employer Portal so you can download a report of your employees enrollment status. If you are interested in finding out if you have employees that still need to enroll prior to the new feature, you can email employerservices@sfcityoption.org. to request a report. Please allow 3 weeks for us to process your request.

Tell your employees to set up their MRA by going to sfcityoption.org/enroll and remind those who have enrolled to use their funds to keep accounts open. The SF City Option program offers webinars and individual enrollment and claims assistance to your employees in English, Spanish and Chinese. Just reach out to us at employerservices@sfcityoption.org.

Yes, we will send additional communication to employees to remind them to enroll or to keep their account active by submitting a claim for reimbursement. Employees who have inactive accounts will be notified at least three times prior to account closure.

No, you cannot transfer these funds to an HSA or any other health account.

Any unclaimed funds after a three-year consecutive period will be reverted to the City and County of San Francisco General Fund.