The CARES Act: Healthcare Provisions

Posted In: COVID-19 Market Update

The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 is an estimated $2 trillion package. In this series, we will discuss four of the most notable provisions for individuals and families.

 

Definition of Qualified Medical Expenses for certain tax-favored accounts is expanded to include over-the-counter expenses

Beginning in 2020, the definition of qualified medical expenses, for purposes of Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Healthcare Flexible Spending Accounts (FSAs) is expanded to include over-the-counter medications.

 

Other select provisions related to individual healthcare

Other notable personal healthcare provisions include the following:

  • Medicare beneficiaries will be eligible to receive the COVID-19 vaccine (when available) at no cost.
  • During the COVID-19 emergency period, Medicare Part D recipients must be given the ability to have, upon request, up to a 90-day supply of medication prescribed and filled.
  • Telehealth services may be temporarily covered (through plan years beginning in 2020) by an HSA-Eligible high deductible health plan before a participant has met his/her deductible.
  • Rules for providing telehealth services are relaxed during the COVID-19 emergency period for Medicare, Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs), Home Dialysis and Hospice Care Recertification.

These are some of the most notable healthcare changes that The CARES Act has brought. For more information on how these changes might apply to you, please contact your advisor.

 

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purposes of avoiding penalties that may be imposed by law. Each tax payer should seek tax, legal or accounting advice from a tax professional based on his/her individual circumstances.
This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions. Information has been obtained from sources believed to be reliable and are subject to change without notification. The information presented is provided for informational purposes only and not to be construed as a recommendation or solicitation. Investors must make their own determination as to the appropriateness of an investment or strategy based on their specific investment objectives, financial status and risk tolerance. Past performance is not an indication of future results. Investments involve risk and the possible loss of principal.

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