This advisory summarizes key provisions in the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") applying to employee benefit plans.
Over-the-Counter (OTC) Drugs and Menstrual Care Products (optional)
The CARES Act states that consumers can purchase OTC drugs and medicines with funds from their Health Savings Account (HSA), Health Care Flexible Spending Account (HCFSA), or Health Reimbursement Arrangement (HRA). Consumers may also receive reimbursement for OTC purchases through those accounts. In addition, menstrual products are now considered a qualified medical expense, meaning consumers can pay for or be reimbursed for these products through an HSA, HCFSA or HRA. This provision is effective for purchases made after December 31, 2019, and for reimbursements of expenses incurred after December 31, 2019. It does not have an expiration date.
Implementation Tips:
Telehealth Changes (temporary - only for plan years beginning on/before 12/31/2021) - also optional
The CARES Act states that "telehealth and other remote care services" below the deductible will be permitted in an HSA-compatible high-deductible health plan (HDHP). This provision is effective immediately and will expire December 31, 2021. The bill does not specify what "telehealth and other remote care services" entails, but you can expect updates from us as we learn more either through regulations or DOL/Treasury FAQs.
Implementation Tips:
Remember, this "safe harbor" guidance is only available for a limited time. Given the importance of telehealth in the COVID-19 crisis this will come as a relief, enabling employers to temporarily remove safeguards put into place to ensure HDHP/HSA compatibility for telehealth, such as charging fair-market value until participants meet the statutory minimum deductible. However, unless this relief is extended for plan years beginning on or after January 1, 2022, employers will need to revert to their current safeguards.
Health and Welfare Plans in general - these changes are NOT optional
After an HCFSA or HRA plan is modified, by the ER (in writing), this will apply to claims incurred and paid after December 31, 2019. No modifications are necessary to permit this OTC change to HSAs.
Please speak with your Account Manager or Sales Executive for assistance with any of these changes.
Links:
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