Tips to figure out who pays for required COVID-19 test costs

Q         If an employer requires COVID-19 testing as a condition of employment, who covers the cost?

A   The Coronavirus Aid, Relief, and Economic Security (CARES) Act requires medical plans to pay for COVID-19 testing if healthcare professionals determine it’s medically necessary, such as when an employee goes to the doctor with virus symptoms and the doctor orders the test. At the same time, it doesn’t require coverage if a test is performed for employment-related reasons. For example, you may require a negative test before a new hire can enter the workplace. Nothing precludes the company, however, from voluntarily (1) entering a plan that covers testing performed as a condition of employment and (2) covering the cost.

When an employer isn’t willing to cover the cost of employment-related testing, state and federal laws need to be considered before making a final decision.

Notably, the Occupational Safety and Health Administration’s (OSHA) emergency temporary standard, which would have applied to employers with at least 100 employees until the U.S. Supreme Court recently shot it down, was silent on the cost issue. Under Equal Employment Opportunity Commission (EEOC) guidance, however, employers could be required to pay for a test. The EEOC determined that under the Americans with Disabilities Act (ADA), if an employee poses a “direct threat” to the health or safety of others or himself and must be examined by a healthcare professional, the employer must pay all costs associated with the evaluation.