It’s likely not a surprise that last year saw a decline in healthcare spending due to closed medical offices and many other factors related to COVID-19. Because of this, provisions were included in December’s Consolidated Appropriations Act for both health Flexible Spending Accounts (FSAs) and Dependent Care flexible spending accounts (DCAs).

Over the past few years, surprise billing has been a very hot topic and a huge source of frustration for members affected by it. One large unexpected bill from a health care provider or facility can be financially and emotionally devastating for patients that have already endured a surgery or emergency medical event. Legislation passed shortly before Christmas is a big step toward easing the concerns of Americans in the health care system.

As the first doses of the COVID vaccine are arriving in Colorado and across the country, questions are being raised by employers about their health plans and office safety procedures. Our partners at Alera Group have issued guidance on what employers should be doing now to prepare themselves and their employees for the vaccine rollout. Read the recommendations here regarding medical policy cost restrictions and vaccine requirements.

The Affordable Care Act (ACA) reporting for employers can be confusing, burdensome, and time-consuming. Most of the reporting requirements have not changed, but every year we see employers rushing to complete the requirements before the deadline. One of our partners, Benefit Advisors Network, has put together a resourceful guide with instructions and forms for the 2020 employer reporting requirements. 

COVID-19 has certainly had far-reaching effects for employees, including the reduced ability of parents to use pre-tax money set aside in their Dependent Care FSA fund due to the unexpected shutdowns of daycares, nurseries, and schools. Because employees likely decided how much to contribute to their Dependent Care FSA before COVID-19 became widespread, the “use it or lose it” rule may seem particularly harsh for 2020. The good news is that employers can alleviate some of the concern about losing that money after December by simply amending their Section 125 Plan Document to include a grace period for the use of those funds. This gives employees a longer window of time (until March 15th, 2021 for calendar year plans), to use their Dependent Care funds for 2020. Please click here for more information, and if you have questions about amending your Dependent Care FSA Plan Document, please reach out to your Fall River Account Manager.