“Leadership Webinar Series” with Marj Ciucci, Senior Benefits Consultant
Topic: “Employee Benefits & Returning to Work Post-COVID”
1. As I start to bring my employees who were laid off due to COVID 19 back to work, do they have a waiting period to rejoin their benefit plans?
a. No, during this period of time carriers are waiving the “rehire” waiting periods and bringing employees back onto their plans when they are rehired.
2. I’ve heard that COVID claims are covered differently. How so?
a. COVID claims are covered at 100%, this includes testing and antibody testing. For those with an HSA, they do not have to meet a deductible for these claims first.
3. I have heard there are changes to FSAs? What does this mean for employees?
a. Retroactively back to 1/1/20, cafeteria plans MAY allow mid-year pre-tax election changes for
i. Enrollment in a health plan when previously declined
ii. Enrollment of dependents
iii. Changes in FSA and DCA elections
b. It’s important to note
i. that it’s the employers choice to allow these changes
ii. If these changes are adopted plan amendments must be made
iii. Insurance carriers are currently not allowing these kinds of changes to plans – However, Oxford did allow some of these kinds of changes in March and April so it would be more of a “covering things that have already been done”
4. I have heard that timeframes for FSAs have been changes, what does that mean to employers?
a. The IRS will allow plans to implement an extended period for incurring and reimbursing health FSA and DCAP expenses at the end of a plan year or grace period (including previous carryover amounts) ending in 2020, through 12/31/20. For example, a plan year or grace period ending 6/30/20 can choose to reimburse claims through 12/31/20
b. In addition, the IRS has increased the 2020 plan year allowable carryover amount for health FSAs from $500 to $550.
5. Are there any compliance time frames that have been extended due to COVID 19?
a. Due to COVID 19, deadlines certain compliance rules have been extended in the following manner: 60 days after the National Emergency Period has been declared over. For instance, if the NEP is declared over on April 30, 2020, there would be a 60 day (outbreak period) so the normal compliance deadlines would start on June 29, 2020. This includes HIPAA Special Enrollment, COBRA continuation, filing benefit claims or appeals, notices under ERISA.
6. I’ve heard there is a special open enrollment for medical plans due to the COVID 19 outbreak, what does that mean?
a. Special Enrollment Periods for certain situations such as births, adoptions, marriages are provided for under HIPAA as long as they are requested within 30 days of occurrence. Due to COVID-19 that 30-day requirement is postponed to reflect the end of the Outbreak period.
b. Example: Mary declines her employer’s group coverage at open enrollment on 11/1/19. On 3/31/20 she gives birth and would like to enroll herself and child onto the employer’s health plan. Using the earlier date EXAMPLES, so in this instance, Mary would have until July 29, 2020, to enroll herself and her child onto the health plan.
7. There have been recent changes to COBRA Time Frames, can you explain what they are?
i. The 60-day period for qualified beneficiaries to elect COBRA coverage;
ii. The date for making COBRA premium payments (45 days for initial election, 30 days grace thereafter;
iii. The date for individuals to notify the plan of a QE or disability determination – usually 60 days
b. Examples: Using the same dates we’ve discussed
i. John has a reduction in hours and is sent COBRA paperwork for a 4/1/20, he has until August 28, 2020 to elect coverage
ii. Joe has been on COBRA, makes a payment on 2/1/20 but doesn’t make a payment after that. He must make a payment for March, April, May, June by July 29, 2020. If he fails to make the payments he is termed back to when he last made a payment.
8. Am I required to put a former employer on COBRA if they haven’t made a payment yet?
a. Yes, COBRA law mandates that employers reinstate coverage once an employee elects coverage
9. What do I do if the end of the extended time period ends and an employee hasn’t paid me?
a. The statute provides that if an employee does not make ALL back premium payments then they can be terminated back to the last date they paid. We are, however, waiting for confirmation from carriers that THEY will allow this backdating.
10. Are there any compliance time frames that have been extended due to COVID 19?
a. Claims and appeal times are extended by the NEP and Outbreak period
b. Furnishing benefit statements, disclosures and notices under ERISA, including read sheet
c. 5500s are not included but have a separate timeline of forms due between 4/1 and 7/15 to all be due on 7/15/20
County Executives Believe Mid-Hudson Economy on Cusp of Reopening
“I think the Hudson Valley, like the other regions of New York State, is moving close to being open. This is the call that the governor and his people make. It is not my call,” Latimer stressed. “I think we are close. I think we should be over the line very shortly and open up to the first phase (of reopening).”
