How the CARES Act will affect your employee health and retirement plans

In an effort to support American workers, Congress passed the new federally funded Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Here’s what employers need to know about how this will affect their health and retirement plans.

Health plans

The CARES Act contains several provisions applicable to employer-sponsored health plans and tax-favored medical expense reimbursement vehicles, including:

• Allowing high deductible health plans to cover telehealth and remote care services without cost-sharing and without jeopardizing an individual’s Health Savings Account (HSA) eligibility for plan years beginning before December 31, 2021;
• Requiring group health plans and insurers to cover any FDA-approved COVID-19 vaccine once developed as preventive care without cost-sharing; and
• Allowing HSAs, health reimbursement arrangements, health flexible spending accounts, and Archer medical savings accounts to reimburse over-the-counter medications and certain menstrual care products, such as tampons and pads.

Additionally, the CARES Act also extends the deadline to make a 2019 contribution to an HSA to July 15, 2020, to coincide with the new tax filing deadline.

Retirement plans

The CARES Act has certain provisions relating to retirement plans applicable to all individuals, and additional provisions for those with a COVID-19 related event, as defined below. The provisions also apply to plan sponsors whose plan may or may not currently allow the type of relief being provided.