COVID-19 Employer Issues: Edition 2, The CARES ACT

Passed by Congress and signed by the President on Friday March 27, 2020, the Coronavirus Aid, Response, and Economic Security Act (CARES) brings much needed relief to the many sectors of our economy. In addition to economic and business financing relief, CARES has many features that relate specifically to employer sponsored health insurance benefits. These changes are designed to directly address COVID-19 medical care, how we receive care in a time of social distancing, and cost savings for individuals covered by commercial insurance plan: 

• Testing done for COVID-19 is to be covered in full by an insurance policy, meaning no copay, coinsurance or the cost applying towards a deductible. Services can be rendered at a Physician office, urgent care, emergency room or via Tele-health. Testing can be done at a private or public lab. This regulation applies while we remain in a declared public health emergency.
• Health Savings Accounts (HSA) can be used to pay for Tele-health services prior to meeting the Deductible. This is done to encourage the use of telemedicine services.  This rule applies until the end of 2020.
• HSAs, FSAs, HRAs and Archer Medical Savings Accounts can be used for certain over the counter (OTC) medical products without a prescription. This is a reversal of regulations under the Affordable Care Act. This was done to reduce the additional strain on the medical community from medical appointments simply to receive a prescription for OTC medicines and to add cost savings to individuals utilizing these tax favored accounts.
  • Menstrual products are now included as eligible OTC products.

Please reach out to your KBM Representative with any questions.  We are 100% remote, but ready and able to assist your business and covered employees.