San Francisco Health Commission proposes policy to address $104M in inactive City Option funds
January 04, 2022 | San Francisco City, San Francisco County, California
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San Francisco's Health Commission has taken a significant step towards improving the management of unclaimed funds in the City Option program, with a proposal aimed at addressing a backlog of inactive accounts. During a recent meeting, the commission discussed the implementation of an "inshipment" policy, which would allow the city to reclaim unclaimed funds after a three-year dormancy period, in accordance with California state law.
Stella Chow, the Director of Managed Care, presented the proposal, emphasizing the need for a streamlined process to maximize the use of funds for program participants. The initiative, developed in collaboration with various city officials, aims to simplify access to benefits and enhance outreach efforts to ensure that employees are aware of their accounts. Currently, an estimated $104 million remains unclaimed, representing about 7.6% of total employer contributions since the program's inception in 2008.
The proposed policy is part of a broader effort to engage employees and improve fund utilization. Chow highlighted that the city has never initiated any funds since the program's launch, leading to a growing number of inactive accounts. The outreach plan includes notifying employees about the policy changes and encouraging them to activate their accounts before the three-year period begins in July 2025.
Commissioners raised concerns about effective communication with employees, particularly regarding those who may not have understood previous communications. The Health Commission plans to work closely with the Office of Labor Standards Enforcement to ensure that employers effectively relay information to their employees.
As the city prepares to implement this policy, it aims to enhance its communication strategies and outreach efforts, particularly targeting large employers with high employee turnover. The Health Commission will continue to monitor progress and provide updates on the initiative, which is expected to significantly impact the management of unclaimed funds in San Francisco.
Stella Chow, the Director of Managed Care, presented the proposal, emphasizing the need for a streamlined process to maximize the use of funds for program participants. The initiative, developed in collaboration with various city officials, aims to simplify access to benefits and enhance outreach efforts to ensure that employees are aware of their accounts. Currently, an estimated $104 million remains unclaimed, representing about 7.6% of total employer contributions since the program's inception in 2008.
The proposed policy is part of a broader effort to engage employees and improve fund utilization. Chow highlighted that the city has never initiated any funds since the program's launch, leading to a growing number of inactive accounts. The outreach plan includes notifying employees about the policy changes and encouraging them to activate their accounts before the three-year period begins in July 2025.
Commissioners raised concerns about effective communication with employees, particularly regarding those who may not have understood previous communications. The Health Commission plans to work closely with the Office of Labor Standards Enforcement to ensure that employers effectively relay information to their employees.
As the city prepares to implement this policy, it aims to enhance its communication strategies and outreach efforts, particularly targeting large employers with high employee turnover. The Health Commission will continue to monitor progress and provide updates on the initiative, which is expected to significantly impact the management of unclaimed funds in San Francisco.
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