NEWS YOU SHOULD KNOW

How COVID-19 and the CARES Act Impact Benefits

Due to the recent health crises, we've received several questions from employees about how their benefits are impacted by COVID-19.  Below are some answers to your top benefit related questions around COVID-19 and the CARES Act.

Is there an extension for filing a FSA claims for the 2019 plan year?  Yes, the claim filing deadline for claims on your 2019 FSA accounts has been extended from April 15 to June 30, 2020.  Claims must have been incurred during the plan year (January 1 - December 31, 2019 or the plan grace period (January 1 - March 15, 2020).

I didn't enroll in Healthcare or Dependent Care FSA for the 2020 plan year, but now I want to.  Can I make a mid-year election change to enroll?  Probably not, Under IRS rules and the governing plan documents, generally you cannot make changes to FSA elections unless you experience a qualifying event that affects eligibility or the number of dependents.  

The schools are closed and my childcare needs have changed.  Can I make an election change for my Dependent Care FSA election?   Maybe, The COVID-19 pandemic has an impact on employees parents and children.  The dependent care flexible spending account program (also known as a "dependent care assistance program") has flexibility during times like these while parents work.

 Recent life events may provide participants with an opportunity to increase or decrease their dependent care FSA elections for certain situations, including:

*  A Change in a day care provider

*  Cost of care changes (unless care is provided by a relative)

*  Need for care changes due to a job change or change of work hours

participants have 60 days from the date of the event to submit a request.

How does the CARES Act affect my FSA account?

The Corona-virus Aid, Relief, and Economic Security Act (CARES Act) was signed into effect on March 27, 2020, and expands the list of items eligible for reimbursement from the Health Care FSA account.

Retroactively effective as of January 1, 2020, the CARES Act allows participants to now be reimbursed for the following items and service using their healthcare FSA:

*  Over-the-counter medicines (these treatments no longer require a prescription)

*  Menstrual care products (e.g., pads, tampons, liners and related items)

Please keep in mind that merchants will need some time to get their point-of-sale systems and inventory updated with the expansive list, so your debit card may not work yet.  You can still file a manual paper claim for these expenses.

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