The Federal Government recently passed the Coronavirus Aid, Relief and Economic Security Act or CARES Act that includes provisions pertaining to Healthcare Flexible Spending Accounts.   Under the CARES Act is a special provision relaxing the OTC restrictions for healthcare spending accounts.

Below are the highlights of the CARES Act pertaining to Healthcare FSA's shared to us by our FSA vendor, P&A Group.  These changes apply to employees who have an existing FSA through the State of Maryland.

• Over-the-counter (OTC) medications are now reimbursable under Flexible Spending Accounts without requiring a prescription or completing a Letter of Medical Necessity Form. This provision is retroactive to January 1, 2020.   
• Menstrual care products are now reimbursable as eligible expenses, including tampons and pads.  

Important Over-the-Counter Changes

Merchant Updates & Using your FSA Debit Card: 

The new OTC eligibility will require an update to merchants’ eligible products. Every merchant will need to update their system to allow Benefit Cards to work at the point-of-service for OTC expenses. You should anticipate that not every merchant will have their systems updated right away.  Industry experts have stated this process may take 4-6 weeks to complete and updated systems may differ on a merchant-by-merchant basis.  In summary, approximately 17,500 OTC items will be adopted by merchants. Feminine care items will most likely be added within 4-6 weeks and will be available for purchase with your Benefits Card at that time. 

Submitting Claims to P&A Group:

Claims may now be filed for OTC medications incurred in 2020. The quickest and most efficient way to file your reimbursement for these out-of-pocket expenses is to log into your account at md.padmin.com or through our mobile app. Click Upload Claim/Documentation. You can also fax or mail a claim form to P&A Group. Claim forms are also available when you log into your account.

Please note:  If you are submitting a claim for previously denied OTC expenses incurred between January 1, 2020 and March 27, 2020, please submit the expense as a NEW claim.   

If you have any questions, please contact P&A Group Monday – Friday, 8:00 am –10:00 pm ET at md.padmin.com or (844) 638-1900.

Employees who have supplemental retirement accounts and are experiencing financial hardship have new withdrawal and loan options under the Federal Coronavirus Aid, Relief and Economic Security Act (CARES Act).

The USM Supplemental Retirement Plans (SRA) adopted changes under the CARES act to its TIAA and Fidelity 401(a), 403(b), and 457(b) plans.  The CARES Act was created to provide financial relief to individuals and families, small businesses, and the aviation, healthcare, and education sectors.

Please see the following USM memo.

Coronavirus-related Distributions

• 10% early withdrawal penalty and 20% tax withholding waived
•  $100,000 limit across all SRA plans
• Income taxed over three years with taxpayer ability to re-contribute within three years regardless of that year’s cap
• Participants self-certify that they’re impacted

Coronavirus-related Loans

• Loan limit increased to the lesser of $100,000 or all of vested account balance
• Repayments due between the date of CARES enactment and year-end delayed one year
• Participants self-certify that they’re impacted
• Existing loan payments may be suspended through the end of the 2020 calendar year. Payments will begin again in January 2021.

• Request a Suspension of Required Minimum Distributions (RMDs) due in 2020
• Initial RMDs still due to be taken before April 1, 2020
• Participants who want to continue taking their distributions will be able to do so.
• Financial vendors can verify if you meet RMD criteria

Employees experiencing hardship can contact their respective retirement vendors for rules, details, and to start the distribution process.

Employees who wish to change their contributions can do so by completing an SRA change/enrollment form.  Forms can be found here.

COVID-19 has resulted in a number of lifestyle changes, including closed daycare facilities, unnecessary before and after-school care, or even a new need for daycare.

If you have experienced either a reduction in dependent care costs or a new need for dependent care, you can request a change to your Dependent Care Flexible Spending Account (DCFSA) or enroll in a DCSFA for the remainder of the 2020 calendar year.  

To make a change to your DCFSA or enroll in a DCFSA, please login to your SPS Workday account and select the Benefit Event Type, “Employee: Change in Dependent Daycare”. Here is a link to some helpful instructions for completing this event in your SPS Workday account.

Please note: EBD has temporarily removed the supporting documentation requirement for this benefit change.

Please consider the overall impact to your annual 2020 daycare costs, as the DCFSA runs through December 31, 2020 and is subject to the IRS maximum of $5,000.00 per household per year.

For more information about Dependent Care FSAs, please see the 2020 Benefits Guide, pp. 29-32.

What is SPS Workday?

Please email hrbenefits@umbc.edu with any questions. 

As you may be aware, the State of Maryland issued SB 946 in Spring of 2019 that created several prescription plan options should the court rule in favor of the State of Maryland in the pending Fitch v. the State of Maryland case.  These options are outlined on the Department of Budget & Management website.

The USM just informed us of the following update issued 9/20/2019 by the Department of Budget & Management related to SB 946 (Retiree Prescription Changes).

"DBM has modified our guidance on SB 946 to clarify that employees may continue to work through December 31, 2019 before retiring in order to be eligible for the Maryland State Retiree Prescription Drug Coverage Program.  Please carefully review the updated eligibility criteria for the programs under SB 945 at https://dbm.maryland.gov/benefits/Pages/SB946"

It is vital that employees planning to retire consult the HR office (Benefits) if they have questions and/or if they would like to retire on or before 1/1/2020.  Please contact us at hrbenefits@umbc.edu