HRA COVID-19 Updates
Impacts on HRA
For group health plans subject to Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code, Department of Labor (DOL) relief initially extended certain key deadlines by disregarding the period from March 1, 2020, until sixty days after the announced end of the National Emergency.
This relief was further extended through the Consolidated Appropriations Act, 2021 (CAA). Here is what you need to know about how these changes impact your Health Reimbursement Arrangement (HRA).
Personal Protective Equipment (PPE)
IRS Announcement 2017-07 extended the list of qualified medical expenses for certain accounts to include PPE and we're making updates to extend these provisions to you.
What does this mean for you?
Starting March 26, 2021
When you purchase face masks, hand sanitizer and sanitizing wipes for the primary use in preventing the spread of coronavirus directly with funds from your health account, the purchase will be automatically approved.
If you previously paid for face masks, hand sanitizer and sanitizing wipes out of pocket on or after January 1, 2020, you can submit those expenses for reimbursement from your HRA.
Over-the-counter drugs, medicines and menstrual care products
The CARES Act includes a provision that allows members to use health account funds to pay for over-the-counter (OTC) medications without a prescription. We're making updates to extend these provisions to you.
What does this mean for you?
Starting January 1, 2020
Effective immediately, FSA-qualified health plans can (but are not required to) cover telemedicine and remote care services before an FSA participant meets their deductible.
When you purchase OTC drugs, medicines and menstrual care products directly with funds from your health account, the purchase will be automatically approved. No prescription is needed.
Menstrual care
The CARES Act extended the list of HSA-, HRA- and FSA-qualified expenses to include menstrual care products. We're making updates to extend these provisions to you.
What does this mean for you?
Starting January 1, 2020
Because women can now purchase menstrual care products directly with health account funds, they can save money on taxes and use their regular income on other necessities.
Frequently Asked Questions
There have been a lot of changes during this past month as the nation deals with COVID-19. This list will hopefully help you find the answers you need regarding your health account benefits.
If you have questions or need additional help, please Contact us.
FSA/HRA
What does the Consolidated Appropriations Act 2021 (commonly referred to as the CAA) mean for my Health FSA or HRA?
The CAA offers employers several options to provide relief to employees impacted by the COVID-19 pandemic. Employers can choose to allow unused FSA and HRA amounts to carry over from 2020 to 2021 and from 2021 to 2022, extend the grace period, or allow mid-year election changes.
What is the Outbreak Period?
The Outbreak Period is a timeframe established by the DOL and IRS during which certain deadlines are paused. This period began on March 1, 2020 and continues until 60 days after the announced end of the National Emergency, or such other date as may be announced.
My Health FSA or HRA claims runout occurred during the Outbreak Period, so what is my claims runout deadline?
If your claims runout period fell during the Outbreak Period, you have additional time to submit claims. The deadline is extended by the length of the Outbreak Period, giving you more time to file eligible expenses.
Will prior denied claims that are now eligible be reprocessed?
Yes. Claims that were previously denied but are now eligible under the expanded provisions of the CARES Act will be reprocessed. If you have claims for OTC medications or menstrual care products that were denied, they will be reviewed and processed accordingly.
What is the impact to my claim appeal deadline?
The Outbreak Period relief also applies to claim appeal deadlines. If your appeal deadline fell during the Outbreak Period, the time to file your appeal is extended. Contact your plan administrator for specific details about your appeal rights.