Message Board

Apr 19, 2020

2020 CARES Act and DCFSAs

On March 27, 2020, President Trump signed into law the $2 trillion appropriations bill, The Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act brings emergency assistance and additional health care provisions to Americans affected by the 2020 pandemic. The following two provisions are of particular interest to participants in Flexible Spending Accounts (FSAs):

• Over-the-counter (OTC) drugs and medicines.The CARES Act repeals the Affordable Care Act requirement that OTC drugs and medicines must be prescribed in order to be reimbursed under FSAs. This means that these plans can now pay for or reimburse OTC drugs and medicines without a prescription from a doctor. This provision is effective for expenses incurred January 1, 2020 or after. This provision does not have an expiration date.
• Menstrual care products.The CARES Act also deems expenses for menstrual care products qualified medical expenses, which can be paid by an FSA. This provision is effective for expenses incurred January 1, 2020 or after. This provision also does not have an expiration date.

We also want to address some common questions regarding participant Dependent Care Flexible Spending Accounts (DCFSAs) in the current environment:

Changes to your DCFSA election mid-year are permitted, if you have experienced a qualifying life event (QLE). You may have experienced a QLE that allows you to increase or decrease your election if:

• You experience a change in employment status for you, your spouse or dependent
• There's a change in cost or coverage of your dependent care services.

The change to your account must be consistent with the reason for the change. For example, if a dependent care provider is no longer providing care (i.e., before/after care/daycare closes, summer day camp cancels or care is no longer needed) your election can be reduced. Similarly, if you need supplemental child or adult care due to an increase in hours worked, you may increase your election.

If you need to submit a QLE, you may do so by logging in to your online account at www.FSAFEDS.com.