The CARES Act Becomes Law

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. It provides support to individuals and businesses that have been devastated by the coronavirus disease 2019 (“COVID-19”) pandemic.

The CARES Act contains important provisions that will affect HSAs, HRAs and FSAs.

Effective immediately

• HSA-qualified health plans can now cover telehealth and other remote care service expenses below the HDHP statutory deductible limit, or at no or low-cost sharing, without affecting an account holder’s ability to continue contributing to their HSA.
• Over-the-counter drugs and medicines (those available without a doctor’s preescription) can now be paid or reimbursed through an FSA, HRA or HSA (just like they could before the Affordable Care Act).
• Feminine hygiene products are now considered a qualified medical expense and are eligible for payment or reimbursement through an FSA, HRA or HSA. All expenses incurred after December 31, 2019 qualify.