Vol. XX, Issue 7

January 26, 2021

Consolidated Appropriations Act, 2021: Update for Non-HealthFlex Sponsors

COVID-19 Update—Flexible Spending Accounts

In recognition that many participants have faced unanticipated changes in health and childcare expenses related to COVID-19, the recently passed Consolidated Appropriations Act, 2021 (CAA) amended the Internal Revenue Code to provide new flexibility for health and dependent care flexible spending accounts (FSAs). Specifically, the CAA gives employers that sponsor FSAs the option to amend their FSA plan(s) for any of the following:

Additional guidance from the IRS regarding the details of this flexibility provided by the CAA is expected.

If a plan sponsor elects to take advantage of any of the above, a formal amendment to the FSA plan(s) must be adopted by the end of the plan year after the year in which the change is effective. Wespath recommends that plan sponsors work closely with their FSA administrator to consider the options in detail and determine how they apply to your plan. (For HealthFlex plan sponsors, Wespath is currently working with HealthEquity on the operational details of the new flexibility for HealthFlex participants. More details will be forthcoming in a HealthFlex Express.)

New Mental Health Parity Requirement

The CAA also contains a provision amending the Public Health Service Act, ERISA, and the Internal Revenue Code to add additional compliance requirements related to mental health parity. Group health plans and issuers that provide mental health benefits along with medical and surgical benefits must document an analysis comparing any limits of coverage that are not quantitative (such as a medically necessary requirement, or requirements to try some therapies or drugs before others). The comparison must indicate which limits are applicable to which benefits, as well as the factors and evidentiary standards that will be applied to make a decision regarding the limitation. The plan sponsor's analysis should indicate (hopefully) that the limits are not applied more stringently to mental health benefits than to medical and surgical benefits. If this is not the case, the written report should include this conclusion.

The new analysis must be made available, if requested by the U.S. Department of Health and Human Services or an applicable State authority, beginning 45 days after enactment of the CAA (i.e., by February 10, 2021). While this date is very soon, there may be a lower likelihood of such regulatory requests in the very near term. However, plan sponsors will want to at least commence good faith efforts to generate the required document. You may want to obtain professional guidance on this requirement and analysis from a benefits or legal consultant or your health plan's third-party administrator.

1 "Change in status" events include, for example, birth of a child, marriage, divorce, death, and change in coverage of a spouse or dependent under another employer's plan.

2 The existing $550 carryover feature is available only to health FSAs. The dollar limit is indexed for inflation and subject to change in the future.

Wespath Dimensions Newsletter Is Now Available

The January edition of the Dimensions newsletter will be e-mailed to participants today. This issue includes stories about acts of kindness, staying active outdoors during the winter and financial resources. Bishop Paul Leeland of the Southeastern Jurisdiction shares a personal success story of "Retiring Well—More than Financial Planning." All of the articles can be found on wespath.org. A PDF with all of the stories is also available.

Conference Forum and HealthFlex Mini-Summit

Wespath Benefits and Investments (Wespath) invites conference benefits officers, treasurers, conference board of pension members and health benefits administrators to attend:

Thursdays in March!

Wespath will be hosting four virtual mini-meetings on Thursday afternoons in March. The meetings will be held each Thursday from 1:00 p.m. to 4:30 p.m. Central time. Each week will focus on a different set of topics, with the 4th Thursday (March 25) featuring a HealthFlex Mini-Summit.

Agendas for the events are available online.

Conference Forum

HealthFlex Summit

Registration

Click here to attend the Conference Forums and the HealthFlex Mini-Summit. Please register to attend these events by Friday, February 19.

Virtual Clergy Event: Wespath Benefits and Investments "Delivered to You"

Wespath is excited to be hosting another "Delivered to You" educational event. This virtual event will bring education and five dimensions of well-being to all active clergy in their workplace/home space.

The Wespath meetings and events team has changed direction from live, in-person opportunities to offering a virtual event that will provide an energizing customer experience in a new and different way. Wespath Benefits and Investments "Delivered to You" will be hosted on Monday and Tuesday, February 8-9, 2021 and will be two half days—in the afternoon. The event will provide educational information that will inspire and encourage clergy of all ages and stages in ministry.

We are excited about this virtual event and hope you will help us promote it within your conference. We are grateful for your partnership in this adventure and for your ongoing support.

Registration is now open.

The registration fee is $49.00. The fee offsets the cost of an event Care Kit that will be delivered to each attendee who is registered in advance, to help them participate fully and enjoy the event more.

Check our website for more information and to invite your clergy to register today.

Thank you for your support as Wespath continues providing education to help clergy make informed benefit decisions and caring for those who serve.


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