Expansion of “Free At-Home Testing for Americans”
On December 21, 2021, President Biden announced a plan to further battle the ongoing COVID-19 pandemic. Among the items listed as the expansion of free at-home testing. On January 10, agencies issued FAQs clarifying that group health plans and issuers must provide coverage of over-the-counter home COVID-19 tests without participant cost-sharing, preauthorization, or medical management. Currently, the cost for diagnosing COVID-19 through home testing is an eligible medical expense that may be paid or reimbursed under healthcare Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs). In the case of health FSAs and HRAs, the plan document must permit the reimbursement. Plans with provisions allowing reimbursement of any expense that qualifies as a medical expense under the Internal Revenue Code and applicable regulations will automatically permit reimbursement of home COVID-19 tests. However, plan sponsors are encouraged to review their plan documents to determine if additional plan amendments are needed if they wish to permit such reimbursements.
HealthEquity has put together a general summary of the potential effects of the recent government guidance on employee benefit plans. You can check out this guidance here.
Your Further/HealthEquity team
This general summary is intended to educate employers and plan sponsors on the potential effects of recent government guidance on employee benefit plans. This summary is not and should not be construed as legal or tax advice. The government’s guidance is complex and very fact specific. As always, we strongly encourage employers and plan sponsors to consult competent legal or benefits counsel for all guidance on how the actions apply in their circumstances.