Government Relief

For those who require reporting from CDPHP for paid premiums, please contact your account representative.

Please note the information below applies to full-insured commercial groups. Self-funded employer questions should be discussed with your CDPHP account representative.

CARES Act

The Coronavirus Aid, Relief, and Economic Security Act (CARES) includes $350 billion in Small Business Administration loans, as well as other grants, to help small businesses get through economic hardship caused by the COVID-19 pandemic. The single largest stimulus package in American history, the CARES Act allows small businesses under 500 employees to secure loans up to 2.5 times a borrower’s average monthly payroll costs, and can be used in many ways, including:

  • Compensation (salaries, wages, commission, etc.)

  • Payment for vacation, parental, family, medical, or sick leave

  • Payment required for the provisions of group health care benefits, including insurance premiums

Check with SBA preferred lenders or the U.S. Small Business Administration. CDPHP has helpful fact sheets as well.

The act also includes important funding account provisions, including:

  • HSA-qualified health plans can now cover telehealth and other remote care service expenses below the high-deductible health plan statutory limit, or at no or low-cost sharing without effecting an account holder’s ability to continue contributing to their HSA. This provision will last until December 31, 2021.

  • Over-the-counter (OTC) drugs and menstrual care products – The CARES Act states consumers can purchase OTC drugs and medicines with funds from their health savings account (HSA), flexible spending accounts (FSA), or 213(d) health reimbursement arrangement (HRA). Consumers may also receive reimbursement for OTC purchases through those accounts. In addition, menstrual products are now considered a qualified medical expense, meaning consumers can pay for or be reimbursed for these products through an HSA, FSA or 213(d) HRA. This provision is effective for purchases and expenses made/incurred after December 31, 2019.

CDPHP will keep your posted as to when debit cards will successfully swipe for OTC purchases. In the meantime, members with HRAs or FSAs can submit their reimbursements in their CDPHP online account. For HSA claims, claims can be submitted via HealthEquity or BenefitWallet.

For more information on the CARES Act, including how it may help your clients, visit the U.S. Chamber of Commerce Coronavirus Emergency Loans and Small Business Check List or the U.S. Small Business Administration website.

Small Business Disaster Loans

The U.S. Small Business Administration (SBA) is working with states to provide targeted, low-interest loans to small businesses and not-for-profits that have been impacted by the crisis. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue. For additional information, head to the SBA website.

Additionally, legislation pending before Congress could also provide significant funding for businesses looking to maintain health insurance coverage for their employees.

Payroll Tax Credits

The U.S. Treasury Department, Internal Revenue Service (IRS), and U.S. Department of Labor recently announced that small and midsize employers can begin taking advantage of two, new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act).

The Act will give businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.

Additional details can be found on the IRS website.