How the End of COVID-19 National Emergencies Affects Your Healthcare Benefits

As we ease into post-pandemic life, many programs designed to relieve the stress of COVID-19, particularly for healthcare, are coming to an end. In January, President Biden announced that the COVID-19 national emergency and the public health emergency would end on May 11, 2023. The end of these emergencies will affect your healthcare costs and coverage in several ways.

Whether you’re an employer offering employee health benefits or an employee receiving them, it’s important to stay up-to-date with any changes that may impact your healthcare spending and finances. There are three essential things you should know for informed healthcare decision-making.

1. Temporary FSA and HRA extensions for run-out periods will end.

The Employee Benefits Security Administration (EBSA) issued the EBSA Disaster Relief Notice 2020-01 to offer relief to employers and employees, allowing temporary extensions to deadlines for benefits coverage or claims.
 
The notice also extended run-out periods—a designated time to send reimbursement claims—for Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs). The additional time enabled participants to submit claims for any plan year they were actively enrolled in, with a run-out period between March 1, 2020 and 60 days after the end of a COVID-19 national emergency. Plan participants should submit their claims as soon as possible before the 60 days run out.

2. Extended COBRA coverage deadlines will end.

The Consolidated Omnibus Budget Reconciliation Act, COBRA allows employees and their families to continue employer-based health insurance coverage due to job loss, such as a layoff. However, they’re required to pay full premium costs.

Like FSAs and HRAs, The EBSA Disaster Relief Notice provided extensions to allow COBRA members additional time to elect coverage, make premium payments, or send changes regarding their coverage.
 
The temporary extensions applied to any deadline from March 1, 2020, and were valid until 60 days after the end of the COVID-19 national emergency or until one year had passed, whichever happened first. The first one-year period ended on February 28, 2021 but was renewed for another year, renewed again in 2022, and in 2023, President Biden once again renewed the national emergency–this time until May 11. Sixty days after that date (May 11), all extended COBRA elections, payments, and other timeframes will revert back to pre-pandemic deadlines.

As the end of the COVID-19 national emergency approaches, there may be additional guidance coming.

3. Medicare will continue to cover telehealth costs through 2024.
 
Telehealth, a virtual healthcare service, became a vital and effective solution during the global pandemic. Because of the health risks, Medicare covered all telehealth appointments.
 
To keep this change in place, President Biden signed a $1.7 trillion spending bill that extended Medicare telehealth coverage throughout 2024. Medicare recipients can continue to access essential care remotely.

Maximize your health benefit accounts with First American Bank Health Account Services

At First American Bank, we prioritize updates about critical healthcare changes that may impact our customers’ finances. We understand the stresses caused by managing high healthcare costs and offer solutions to help employers and employees save on expenses.
 
First American Bank Health Account Services provides several consumer-directed health benefit accounts, including HSAs, FSAs, HRAs, and more. Through our services, you can access tax-saving opportunities and have greater flexibility and control over your benefits.

Our Health Account Services sales specialists can help employers and employees manage their healthcare costs while achieving financial goals. May–and the changes–will be here soon. Get in touch with us today.