On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) into law to provide $2.2 trillion in federal funding to address the COVID-19 crisis. The CARES Act makes a variety of changes affecting health plans. These changes include:
- Expanding the types of coronavirus testing that all health plans and health insurance issuers must cover without cost-sharing (such as deductibles, copayments, or co-insurance) or prior authorization;
- Accelerating the process that will require health plans and issuers to cover preventive services and vaccines related to COVID-19;
- Allowing telehealth and other remote care services to be covered under a high deductible health plan (HDHP) before the deductible is met, without affecting the HDHP’s compatibility with health savings accounts (HSAs) (applicable for HDHP plan years beginning on or before Dec. 31, 2021); and
- Treating over-the-counter (OTC) medications, along with menstrual care products, as qualified medical expenses that may be paid for using HSAs or other tax-advantaged arrangements, such as health flexible spending accounts (FSAs) or health reimbursement arrangements (HRAs).
Practices that sponsor group health plans should become familiar with the CARES Act changes for their plans. While many of the changes are mandatory, there are some discretionary changes that employers can decide whether to make (in consultation with their issuers or benefits administrators). Any health plan changes should be communicated to plan participants.
- January 1, 2020: HSAs, health FSAs, and HRAs can reimburse OTC medications without a prescription.
- March 27, 2020: HDHPs can cover telehealth or other remote care services without a deductible.
Click on the following additional resources to learn more about how these areas of the CARES Act may affect your group health plan.
- Coverage Requirements for Coronavirus Testing & Provider Reimbursement Rates
- Accelerated Coverage for COVID-19 Preventive Services and Vaccines
- Tax-Free Coverage for OTC Drugs and Menstrual Products
- Guidance on High Deductible Health Plans During COVID-19
For additional information, please contact the Curi Benefit Solutions team by calling 800-662-7917.