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FLEXIBLE SPENDING ACCOUNTS
Covid-19
Updates
LET’S TALK ABOUT RELIEF AND YOUR SPENDING ACCOUNTS
COVID relief is now available


The new Consolidated Appropriations Act, 2021 allows employers to increase carryover amounts and extend grace periods for dependent care and healthcare flexible spending accounts. In addition, organizations may allow election changes without regard to change in status rules (annual limits still apply).
 
WATCH
Our on-demand Webinars


Watch this 24 minute webinar to get a full picture of all of the relief options now that the IRS Notice is available. This webinar provides insight into our relief adoption process as well.




ADDITIONAL VIDEOS
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NOTICE UPDATES – THE CLIFF’S NOTE VERSION
Watch this webinar if you’ve watched our previous webinar and just want to know what new things we learned from the IRS Notice. (7 minutes)
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SPEND DOWN FOR TERMINATED FSAS
Learn how the Spend Down for terminated Health FSAs work and what considerations you may want to review before adopting this provision. (5 minutes)
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HSA ELIGIBILITY ISSUES UNPACKED
Watch this webinar if you need more information about how relief impacts HSA eligibility and what you can do to get around impermissible coverage issues. (13 minutes)
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HOW TO COMPLETE SOW TUTORIAL
Listen Now (4 minutes).



COVID RELATED RELIEF
The Consolidated Appropriations Act of 2021

The Consolidated Appropriations Act of 2021 contains the following elective options. These options apply for plan years that END in the calendar year noted below and apply to Health FSAs and Dependent Care Assistance (DCAS) where noted.
  • The ability to carryover ALL unused funds from 2020 into 2021 for Health FSAs and/or DCAs
  • The ability to carryover ALL unused funds from 2021 into 2022 for Health FSAs and/or DCAs
  • Extended grace period options (for 12 months after the plan year end for plan years ending in 2020 and/or 2021) for Health FSAs and/or DCA
  • Extension of relaxed change in status rules for plan years ending in 2021
  • Health FSA spend down for terminated accountholders for the calendar year of 2020 and/or 2021
  • Ability to be reimbursed for dependent care costs for dependents under the age of 14 for certain account holders.


EMPLOYEE RELIEF FLYERS
Use our templates to communicate your relief related plan design features


In addition to the custom participant announcement included in your relief adoption services, Igoe has put together targeted flyers that may help you communicate and reinforce new plan design features.

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CONTACT US
For questions, contact us at [email protected] You can either email your questions or request a teleconference.
Content on this page is evolving rapidly as relief guidance is made available. The last date of publication is listed on the cover page for all of our content guides. The specific page content was updated on June 18, 2020.

LEGISLATIVE UPDATES
  • NEW: As of May 12th, the IRS released two Notices (Notice 2020-29 and Notice 2020-33). These notices allow employers to adopt new plan provisions that could help participants make election changes, have more time to incur and submit expenses, and gain access to higher carryover values. If these changes impact your plan, you will receive a specific communication from Igoe in the next few weeks.
  • NEW: COBRA election and premium payment deadlines are currently on hold. As a result, COBRA qualified beneficiaries may send in late election and premium payments without penalty until further notice.
  • OTC AND MENSTRUAL PRODUCTS ARE NOW ELIGIBLE – THESE PRODUCTS ARE FSA and HSA ELIGIBLE WITHOUT AN RX FOR EXPENSES INCURRED ON OR AFTER 1.1.2020. Please allow merchants time to re-code their products accordingly. If you receive a Benefit Card denial, simply pay out of pocket and submit a receipt.
  • TELEMEDICINE: Telemedicine is covered under Health FSAs, HSAs, and applicable HRAs for services incurred on or after 1.1.2020. These expenses do not require HSA accountholders to meet the HDHP deductible.


COVID-19 RESOURCES

Your Igoe team has put together a few resource guides and identified some site links designed to address questions and provide helpful user tips during this unique time.


PARTICIPANT AND MEMBER GUIDES AND RESOURCES

This guide is specific to how COVID-19 is impacting Spending Account access and what regulatory changes have and have not yet been made. This guide is geared for all audiences but is most helpful to a plan participant. View...

New guide will be published soon to address updates announced on May 12th via Notice 2020-29 and Notice 2020-33
This guide is specific to how COVID-19 is impacting COBRA and what regulatory changes have and have not yet been made. This guide is geared for all audiences but is most helpful to a COBRA member. View...


EMPLOYER AND BROKER GUIDES AND RESOURCES

This resource addresses some of the more complicated questions that employers and brokers are facing as employees are being put on unpaid leaves/furloughs or seeking ways to change existing benefit elections. This document was put together by Christine Roberts, esq. of Mullen & Henzell L.L.P. Ms. Roberts has provided independent counsel to Igoe for many years and remains an invaluable resource to our staff and clients alike. View...

This resource addresses how Igoe’s services are impacted by some of the unique service needs that have arisen as a result of COVID-19 and its impact on benefit utilization and participant’s employment status. View...

This resource addresses how furloughs impact a few of the more prominent spending account options at a high level and address what happens to the impacted participant’s account in our systems. View...


This resource provides an overview of the new mid-year election relief option, what plans it can impact, and how election changes work for each of those eligible plans within Igoe’s systems. View...

This resource provides an overview of the new extended grace period option available for Dependent Care Assistance Plans and Health FSAs (full and limited purpose). View...

This resource addresses COBRA and the Health FSA. This is not a new resource, but it is a helpful took given COVID-19 and its impact on employment status. View...