On Wednesday, March 18, the Senate passed and the President signed the ‘Phase 2’ COVID-19 response bill that was passed Monday evening in the House. This bill will provide temporary paid sick and family medical leave; bolster funding for health, food security and unemployment insurance programs; and provide for free coronavirus testing.
The bill, the Families First Coronavirus Response Act, will put several requirements on employers. It will require group health plans to cover, with no cost-sharing, COVID-19 diagnostic testing. This would include the cost of a provider, urgent care center or emergency room visit in order to receive testing. This requirement applies to ERISA self-funded plans. The IRS has already issued guidance allowing high deductible health plans to cover COVID-19 testing and treatment before a deductible has been reached.
The bill’s Family and Medical Leave provisions were scaled back from the original bill, which included three categories when the leave would be available. The final bill only includes one – the final bill provides the right take up to 12 weeks of job-protected leave under the Family and Medical Leave Act to care for a child of an employee if the child’s school or place of care has been closed, or the child-care provider is unavailable, due to COVID-19.
Congress is expected to move swiftly to put together a ‘Phase 3’ COVID-19 response bill to include a wide range of economic stimulus measures. It has been reported that the Treasury Department sent a list of proposals to the Senate, including $50 billion to aid the airline industry, $150 billion for other distressed sectors of the economy, two rounds of direct payments of $250 billion each on April 6 and May 18, and the creation of a small business interruption loan program. The proposals did not, according to reports, include a payroll tax cut.
House members are also reportedly putting together a ‘Phase 3’ bill, which could include student loan forbearance, expanded Medicaid coverage, additional unemployment insurance payments, relief for homeowners and renters, support for small businesses, an airline rescue package and additional food security measures. There has been no announcement on whether Speaker Pelosi will bring the House members back to DC to vote this week.
BRMS will continue to closely track Congressional action on the COVID-19. Please contact you account manager with any questions.
Source: SPBA
