Coronavirus-related legislation affecting employee benefits plans

The coronavirus public health emergency has created a number of issues affecting employee benefit plans. Employers are asking numerous questions: What does our health plan have to cover as it relates to coronavirus testing and treatment? Can our employees take a distribution from their retirement plan penalty-free to deal with the coronavirus and its impact on their families?

On the health plan side, Congress and President Donald Trump have taken action, and we have some clear rules regarding what is (and is not) required. We are still waiting, however, on some additional guidance to fully understand the details.

On the retirement plan side, the Coronavirus Aid, Relief, and Economic Security (CARES) Act has been enacted, with some significant changes that employers may implement to give employees another source of income if needed. However, employers should keep in mind the drastic market losses we have recently experienced, and locking in these losses may not be best for employees.

Required change to health plans to cover coronavirus testing

The Families First Coronavirus Response Act (FFCRA), termed as phase 2 of the coronavirus relief legislation, was signed by the president on March 18. The Act requires employers to make changes to their employee health plans to cover coronavirus testing.