COVID-19 Changes to Health Plans Must Be Documented, Circulated

| posted in Blog, Newsletter

A number of plan sponsors have made changes to their group health plans in response to the COVID-19 pandemic, such as covering testing and sometimes treatment without any cost-sharing by the plan enrollee. Any changes that are made must be followed up by amending the plan and communicating the changes to the enrollees. Under the Employee Retirement Income Security Act (ERISA), all health plans are required to deliver a Summary Plan Description (SPD) to enrollees to inform them of the full spectrum of coverage and their rights under the plan. Whenever a plan sponsor makes a material modification to the…
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FSAs, HSAs Can Now Be Used for Non-Prescription Medications

| posted in Blog, Newsletter

The recently enacted $2 trillion stimulus law aimed at providing financial assistance during the coronavirus outbreak also includes a key change on how health savings accounts and flexible spending accounts can be used. The Coronavirus Aid, Recover and Economic Stabilization Act, or CARES Act for short, reverses an Affordable Care Act rule that barred policyholders from using funds in HSAs and FSAs to pay for over-the-counter medications. Health Savings Accounts, known as HSAs, and Flexible Spending Accounts, known as FSAs, allow people to set aside pre-tax funds for medical costs, medical out-of-pocket and copays, as well as for the cost…
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CARES Act Helps Coronavirus-hit Employers, Workers

| posted in Blog, Newsletter

The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act stimulus law to help American workers and businesses weather the outbreak has a number of provisions that employers and their workers need to know about and can take advantage of during this crisis. The CARES Act includes provision for: Extended unemployment benefits. Requiring health plans to cover COVID-19-related costs. Small Business Administration (SBA) disaster loans. Loans for large corporations. Parts of the CARES Act will likely benefit your organization and employees in some way. Here’s what you need to know: Extended unemployment The CARES Act extends unemployment insurance benefits…
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