Notice 2020-15: HDHP’s will not fail to be HAS-qualified regarding COVID-19
- Carriers are continuing to provide coverage for treatments of COVID-19
- Notice 2020-18: extended tax deadline extended by 30 days (1095C filing is exempt from the extended deadline).
- Must apply for extension and wait for the approval in advance
CMS Response: Essential Health Benefits (EHB) Package
- All plans must provide coverage for diagnosis and treatment of COVID-19 under the ACA.
- Quarantine is not covered but home health care may be covered.
- Vaccines must be also covered under essential health benefit once released EEOC Response: Americans with Disabilities Act (ADA) applies to employers with 15 or more employees
- Due to the pandemic, employer may send employees home, report any illness, require a doctor?s note upon return of the employee.
- Family and Medical Leave Act (FMLA) ? In addition to the current benefits, eligible employees continue the group health plan benefit during the leave.
Division C – Emergency Family & Medical Leave Expansion Act
- Effective April 1, 2020 Leave before April 1 does not apply to the requirements under this law
- Employers with fewer than 500 employees (takes FT, PT, and leave into account)
- Eligible Employees ? FT, PT, and Temporary
- Eligibility Periods:
- Expanded Family and Medical Leave: employed 30 days
- Paid sick Leave component: No eligibility Period
- First 10 days are unpaid; Following days cover 2/3 regular pay rate.
- Employers with less than 25 employees aren?t required to restore.
- Exempts employers < 50 employees from private lawsuits
Division E – Emergency Paid Sick Leave Act
- Employee qualify if they are unable to work
- Full time employees- 80 hours, rate capped to $511 per day/$5,110 per employee.
- Only eligible if employee is able to work regardless the pandemic (business not closed and has work for the employee). Does not apply to businesses such as restaurants, hotels, etc.
- Full time employee whose child?s school was closed due to COVID-19 is eligible for 12 weeks of paid leave; 10 days of full pay 2/3 following 10 days.
Division G – Tax Credits for paid Sick and Paid Family & Medical Leave
- Employers receive 100% reimbursement in the form of payroll credit
- FMLA Expansion Act & Family leave credit: wages capped at $200 per day for each individual up to $10,000 for all quarters per individual.
- Emergency Paid Sick Leave Act & Sick leave credit (Day 1-3 capped at $511 & Day 4-6 capped at $200 per day).
- Employers must report qualified leave wages including allocable health plan expenses, employer?s share of Medicare tax
Sources:
IRS – High-Deductible Health Plans Can Cover Coronavirus Costs.
Greenberg Traurig LLP – EEOC Coronavirus Disease 2019 Guidance to Employers
U.S. Department of Labor – COVID-19 and the Family and Medical Leave Act Questions and Answers