Policy & Advocacy

Families First Act and CARES Act Mean More Decisions for HR & Benefits

Both laws also include a number of economic stimulus provisions such as direct payments to many US households, expanded unemployment insurance, and a payroll tax deferral for employers.

April 01, 2020

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Combined with the Families First Coronavirus Response (Families First) Act, which became law on March 18, 2020, the CARES Act includes provisions affecting health, paid leave, student loan, and retirement benefits. Both laws also include a number of economic stimulus provisions such as direct payments to many US households, expanded unemployment insurance, and a payroll tax deferral for employers. We provide an overview of the provisions most relevant to large employers’ health and welfare benefits below.

Topic	Summary & Next Steps	Effective Dates
Testing	Summary Families First Act requires all plans to cover COVID-19 testing with no cost-sharing; CARES Act provides additional details Please see this article for full details.	3/18/2020
Telehealth	Summary HSAs paired with HDHPs can (but are not required to) cover all telehealth and other remote care services before participants satisfy deductibles Next Steps Work with TPAs/carriers to determine how copays, deductibles, or other cost-sharing will apply to telehealth Amend plan documents and other disclosures, if needed Determine how to communicate plan changes, if any, to participants	3/27/2020 through plan years beginning on or before 12/31/2021
OTC Medicine	Summary HSAs, HRAs, and health FSAs can (but are not required to) reimburse costs of over-the-counter drugs without a prescription Next Steps Work with TPAs/carriers to determine if and how HSA/HRA/FSA reimbursement of OTC medications will work Amend plan documents and other disclosures, if needed Determine how to communicate plan changes, if any, to participants	Expenses incurred after 12/31/2019
Menstrual Care Products	Summary HSAs, HRAs, and health FSAs can (but are not required to) reimburse costs of menstrual care products without a prescription Next Steps Work with TPAs/carriers to determine if and how HSA/HRA/FSA reimbursement of menstrual care products will work Amend plan documents and other disclosures, if needed Determine how to communicate plan changes, if any, to participants	Expenses incurred after 12/31/2019
Paid Leave	Summary Families First Act included Emergency Paid Sick Leave and Emergency Family and Medical Leave Expansion for employers with *fewer than 500 employees* CARES Act clarifies dollar limits for both types of leave and extends Emergency Family and Medical Leave Expansion to certain employees who were laid off and rehired Families First Act allows employers a refundable tax credit to offset costs of new leave requirements CARES Act provides for advance of payroll tax credit DOL guidance now available IRS guidance now available Next Steps Work with payroll and legal departments to determine whether new FMLA, paid sick leave, and payroll tax credit provisions apply to any portion of your company Amend plan documents and other disclosures, if needed Determine how to communicate leave benefit changes, if any, to participants	4/1/2020 – 12/31/2020
Educational Assistance Programs	Summary Employers’ educational assistance programs can now include, on a tax-advantaged basis, payments toward employees’ student loans Total educational assistance program benefits remain capped at $5,250 per year Next Steps Determine if educational assistance program should include student loan contributions Amend plan documents and other disclosures, if needed Determine how to communicate changes, if any, to employees	3/27/2020 – 12/31/2020
Future Vaccine Coverage	Summary CARES Act requires all plans to cover COVID-19 preventive services without cost-sharing Includes immunizations, items, or services recommended by USPSTF or ACIP Next Steps Watch for USPSTF or ACIP updates Discuss future implementation with TPAs/carriers	15 business days after recommendation by USPSTF or ACIP

What happens next?

The Department of Health and Human Services, Department of Labor, and Internal Revenue Service will continue to issue implementation guidance. The Business Group will provide updates as this guidance becomes available.

Upcoming Webinar

The Business Group will host a webinar on Friday April 3, 2020 during which we will discuss current COVID-19 developments for employer-sponsored plans. Members will receive an email invitation to register.

Additional Resources

Do you have regulatory/compliance questions related to COVID-19? Please contact us.

Families First Act and CARES Act Mean More Decisions for HR & Benefits

What happens next?

Upcoming Webinar

Additional Resources

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