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Dec 2020
23
December 23, 2020

Is the Consolidated Appropriations Act in Trouble?

Yesterday, we sent out an eAlert titled “Stimulus Bill Provides New Relief for FSAs; Other Developments for Health & Welfare Plans,” describing provisions in the Consolidated Appropriations Act, 2021 that offers employers new options for their Flexible Spending Accounts because of the COVID-19 pandemic. At the time, we assumed that President Donald Trump would promptly sign the bill into law. However, today, we’re seeing news stories that he may have an objection to the bill. Even though passed by Congress, the new law won’t take effect unless the President signs it, so please be sure to hold off on making any changes to your Flexible Spending Accounts unless, and until, the bill is signed into law.
 
The fate of the Consolidated Appropriations Act does not affect coverage for COVID-19 vaccinations, which we also discussed in yesterday’s eAlert. The mandate to cover COVID-19 vaccinations without cost-sharing was passed in a prior bill that was signed by the President and did become law. Therefore, you should continue with plans to cover the new vaccinations.
 
Please reach out to Norbert Kugele, Stephanie Grant or any other member of Warner’s Employee Benefits/Executive Compensation Practice Group if you have any questions about health and welfare plan issues.

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