Legislative and Benefit Program Updates Relating to COVID-19
NRECA is closely monitoring the evolving impact of the spread of the coronavirus (COVID-19) and its impact to communities. The information below is intended to provide a summary of the recently passed Families First Coronavirus Response Act (FFCRA) that may impact your co-op as well as provide you with information on changes NRECA has made to its benefit programs to support plan participants during this time. As further information becomes available, we will be providing updates through this newsletter and other forums. The Department of Labor has issued a fact sheet for employers along with a Q&A document to provide more information. They have also issued a fact sheet for employees.
Legislative update
On March 18, 2020, the Families First Coronavirus Response Act (FFCRA) was signed into law. Among its many provisions, the FFCRA is intended to reduce expenses related to COVID-19 testing, amend the Family and Medical Leave Act (FMLA) and provide tax credits. The law also creates emergency paid sick leave requirements for employers with fewer than 500 employees. An outline of the specific elements of the new law that may impact electric co-ops is based on current guidance and may be updated in the coming weeks as clarifying information is provided.
COVID-19 testing and diagnosis
FFCRA requires group health plans to provide free FDA-approved coronavirus testing products, or products that would otherwise lead to a diagnosis, during a provider visit. Cost-sharing requirements are also waived for the consultation relating to a potential COVID-19 diagnosis (telemedicine, emergency room/urgent care or other onsite consultation). NRECA’s Medical Plan will cover COVID-19 evaluation and testing along with the associated provider visit with no cost share to participants. Subsequent care related to a coronavirus diagnosis is subject to deductible and/or coinsurance amounts.
FMLA modifications
Under the new law, employers with fewer than 500 employees must now provide up to 12 weeks of FMLA job-protected leave for certain qualifying reasons. To qualify, the employee must be unable to work (in person or remotely) because of a need to care for a child younger than 18 whose school or place of care is closed due to the COVID-19 public health emergency. The first 10 days of this leave must be unpaid or supplemented by the employee’s vacation or sick leave. Subsequent paid leave cannot amount to less than two-thirds of an employee’s regular rate of pay. The combination of the paid sick leave and FMLA leave should not total over 12 weeks.
Emergency paid “sick” leave
Employers with fewer than 500 employees must now provide up to 80 hours of emergency paid sick leave related to qualifying COVID-19 events to full-time employees. Part-time employees can receive a number of hours that equates to the number of hours that the employee typically works over a two-week period on average. Paid sick time must be granted on top of any paid leave benefits. To qualify:
Employees may qualify for this leave if they are under mandated quarantine, are seeking a medical diagnosis, have been diagnosed with COVID-19, or are caring for someone under these circumstances.
Leave may also be granted if the employee has a child under age 18 where the school or child care is closed due to COVID-19 precautions.
Tax credits for paid sick and paid family and medical leave
FFCRA provides for a refundable tax credit equal to the qualified paid sick or family leave wages paid by an employer for each calendar quarter. The tax credit is allowed against the employer portion of Social Security and Medicare taxes. For employees who are caring for a family member or a child whose school or place of care has been closed, a lesser credit will apply.
NRECA benefit program updates
In addition to the coverage of COVID-19 evaluation and testing with no cost share obligations, NRECA has made the following adjustments to plans within the Group Benefits Program.
NRECA’s pharmacy benefit manager, CVS Caremark, is waiving early refill limits on 30-day prescriptions for maintenance medications at all in-network pharmacies (excluding controlled substances). Participants are being encouraged to refill maintenance medications for the maximum quantity allowed (up to a 90-day supply). Copay/coinsurance for any refills will be subject to your plan’s cost sharing arrangement. CVS is also providing free home delivery from CVS retail pharmacies for all prescriptions through May 1.
NRECA is currently working with Teladoc to have all consult fees for NRECA Medical Plan participants accessing Teladoc services temporarily suspended through June 30, 2020. Three-day prescription limits for GA residents have been waived while under a state of emergency. Participants seeking consultations are facing longer wait times due to increased demand. At this time, participants are encouraged to make visit requests with Teladoc either online or through the app instead of by phone for faster service. However, appointments or call backs can be made through the website, app or by calling 800.835.2362.
Individuals diagnosed with COVID-19 will be eligible for short-term disability benefits, but those who are quarantined for potential exposure are not eligible.
Flexible spending and health savings accounts can be used to pay for eligible expenses associated with a COVID-19 diagnosis, including prescription medications.
Participant resources
To assist you in communicating these important benefit plan changes to your co-op’s plan participants, NRECA has developed a template email that can be customized and sent. Additional educational resources were noted in the March 18 issue of NRECA Employee Benefits Weekly and have been posted to the Employee Benefits website.
If you have questions regarding these benefit plan changes, please reach out to the Member Contact Center at 866.673.2299 or via email at contactcenter@nreca.coop.
The preceding summary of the legislation is not intended to constitute legal advice. Please consult your co-op’s legal advisor for additional assistance determining applicability to your co-op’s circumstance.