COVID-19 support through FSA extensions, HIPAA special enrollment and COBRA relief

This article contains important information for benefits-eligible employees.

We know you are facing many challenges with the outbreak of the coronavirus (COVID-19), and we want to help. The ADP TotalSource, Inc. Health and Welfare Plan has adopted the following temporary relief measures to support you and your family through this challenging time.

Flexible Spending Account extensions

Due to relief recently issued by the IRS (Notices 2020-29 & -33), ADP TotalSource® has adopted the following Flexible Spending Account (FSA) extensions and allowances.

  • If you were enrolled in the Health Care FSA, Limited Health Care FSA or Dependent Care FSA  during the 2019-2020 Plan Year, you can apply any remaining Plan Year 2019-2020 FSA account balances for eligible claims incurred through Dec. 31, 2020, provided you were enrolled in the FSA on May 31, 2020 (either as an active employee or through COBRA). The new claim filing deadline for the 2019-2020 Plan Year is March 1, 2021.
  • Beginning June 1, 2020 and through Dec. 31, 2020, eligible employees can choose to enroll in the Dependent Care FSA if they previously waived coverage or to increase/decrease their elected contribution. These change requests will not require a Section 125 qualifying event. Please contact a MyLife Advisor at 1-800-554-1802  to initiate a Dependent Care FSA election change. Note: ADP TotalSource has chosen not to adopt similar changes for the Health Care FSA and Limited Health Care FSA at this time.
  • The Health Care FSA and Limited Health Care FSA carryover amount for the 2020-2021 Plan Year has been increased to $550. The carryover amount for the 2019-2020 Plan Year remains unchanged at $500. Please refer to the Summary Plan Description for more carryover details.

“Outbreak period” extensions

In addition, a period of time called the “outbreak period” will be taken into account when determining certain deadlines. The outbreak period begins March 1, 2020 and continues until 60 days after the Coronavirus National Emergency ends (or such other date as the federal government announces, which might depend on your state or geographic region).

Please apply the “outbreak period” extension to each of the following deadlines/time frames.

HIPAA special enrollment

  • The 60-day period to request HIPAA special enrollment
  • The 60-day period for those who lose coverage under a state Children’s Health Insurance Program or Medicaid
  • The 60-day period for those who are eligible to receive premium assistance under a state Children’s Health Insurance Program or Medicaid

Deadline for COBRA elections, notices and payments

  • The deadline for a participant to elect COBRA coverage
  • The 60-day period to notify ADP TotalSource of a COBRA qualifying event or disability determination
  • The deadline for a participant to pay initial and monthly premiums for COBRA coverage

We know this can be confusing. Here’s an example to help explain the extension:

Let’s say you are eligible for your employer-sponsored group health plan but did not choose to participate last Plan Year. The “outbreak period” in your area ends on June 29, 2020, which means you have 60 days after this date to exercise your HIPAA special enrollment rights.

If you were to welcome a baby on March 31, 2020, you and your child would qualify for HIPAA special enrollment effective this date. However, given the “outbreak period” extension, you have until Aug. 28, 2020 to enroll yourself and your child in your employer’s plan provided you pay the retroactive premiums due for any period of coverage.

We hope these changes will make things a little easier for you and your family during this challenging time. Please contact an ADP TotalSource MyLife Advisor at 1-800-554-1802  if you need assistance or have questions.

We’re here for you!

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