- Permits mid-year election changes to health coverage for plan years ending in 2021. An employer who is interested in providing this election flexibility must get written approval from its health insurer (or stop loss carrier, if self-insured) prior to implementation. Also, be sure to communicate the update to employees and plan participants and amend the cafeteria plan accordingly.
- Clarifies provisions in the Consolidated Appropriations Act, 2021 regarding Flexible Spending Accounts (FSA) flexibility for 2020 and 2021 plan years and more. An employer who chooses to implement these changes should continue to work closely with its flex administrator and communicate the changes to its employees and plan participants.
- Provides relief with respect to the effective date of amendments to cafeteria plans and health reimbursement arrangements (HRAs) to implement the expansion of allowed expenses for health FSAs and HRAs by the CARES Act to include over-the-counter drugs without prescriptions and menstrual care products.
If you have questions or need help, please contact one of our benefit consultants.