There have been a lot of changes during this past month as the nation deals with COVID-19. One of the most wide-ranging changes was the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included provisions that can benefit those with HSAs, FSAs and HRAs.
This list of frequently asked questions will hopefully help you find the answers you need regarding your health accounts and the recent changes.
Q: Is hand sanitizer, surgical gloves and/or N95 surgical masks considered qualified medical expenses?
A:
Masks, surgical gloves and hand sanitizer are not considered qualified medical expenses. Some masks may be eligible with a letter of medical necessity.
Q: Can I use HSA or other health account funds to pay for COVID-19 treatment or testing?
A:
All major health plans have waived copays, coinsurance and deductibles for approved COVID-19 treatment and testing through May 31, 2020.* This waiver does not affect HSA eligibility. In addition, office visits, lab tests, medications, urgent care visits, emergency room visits, hospitalization or isolation facility charges can be paid directly by insurance below the deductible without fear of HSA consequences, if directly related to COVID-19. Of course, all qualified medical expenses may be paid from your HSA.
Q: Do we anticipate disruptions to regular service due to COVID-19? Can I still make claims and access funds?
A:
We do not anticipate disruptions to services, including our ability to respond to claims and disperse funds. Our member services team is still available 24/7 to serve you.
Q: Does the CARES Act allow me to change my Healthcare FSA election?
A:
No, the CARES Act did not provide flexibility to allow changes to election amounts or enroll in a health FSA due to changes in medical expenses or health status. However, IRS Notice 2020-29 provides flexibility for employers to temporarily adopt a more expansive list of allowable election changes. Please check your plan for more details.
Q: Can I change my Healthcare FSA elections if I am furloughed?
A:
Generally, a furlough or other change in employment status can affect FSA eligibility and allow for making changes to FSA elections. However, if your plan provides continued eligibility during a furlough or a temporary layoff, there would be no change in status. However, IRS Notice 2020-29 provides flexibility for employers to temporarily adopt a more expansive list of allowable election changes. Please check your plan for more details.
*Plans vary by employer, and these changes do not necessarily change the benefits available under your employer's plan. Please review plan documents carefully or consult your employer for information about your company's benefits.
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