Coronavirus Update for Employers in the United States
Asinta’s US Partner, Alliant, provided this coronavirus update for employers in the United States.
Read this article for Alliant’s March 27, 2020 update.
States Implement Special Requirements for Insurance Carriers
In response to the continued spread of the novel coronavirus (COVID-19), four states, New York, California, Washington, and Oregon have taken action directing state insurance carriers and other state-coverage providers, like Medicaid, to waive certain costs associated with testing for the COVID-19 virus. This Alert describes the specific actions taken by these states. More state action is likely and even possible between the time this alert is drafted and distributed. Alliant’s compliance team will continue to monitor benefit plan developments related to COVID-19 and share information as it becomes available.
Read the full compliance alert
Coronavirus, Your Benefit Plan, and Other Employer Issues
Many companies are struggling to determine how to respond to the Coronavirus Disease 2019 (COVID-19) outbreak, which has turned into a perceived international crisis, is disrupting financial markets, and is prompting government and private-sector quarantines and travel limitations. COVID-19 is creating concern for employers for several reasons: (1) they have a need to protect employees who may be at risk; (2) they have a need to address employee concerns and ensure a healthy workplace; (3) the virus might be transmittable in the workplace; (4) a test is still in the process of being developed to detect COVID-19’s presence; 5) the incubation period after exposure is uncertain, and; (6) early symptoms can mimic less severe respiratory problems, such as the flu.
An understanding of your obligations as an employer, as well as proactive and clear employee communications, can help navigate your workforce through this outbreak. Below are FAQs that address employer obligations, discuss resources that may be available through your group health plan, and answer coverage questions that may arise as a result of this outbreak.
General advice for employers
- Health insurance: In general, coronavirus will be covered as any other illness, and there are not pandemic or quarantine related exclusions in group health plan provisions.
- Life and disability insurance:Group Life, STD, and LTD policies do not generally contain exclusions for communicable diseases or a pandemic.
- Business travel accident: Carriers will NOT cover someone who dies of the coronavirus while traveling meaning they will not pay AD&D benefit. If the policy has a medical rider, they will pay for treatment at this time.
- FMLA:Employees who are infected by the virus and employees with an infected family member are entitled to FMLA leave (if otherwise eligible). However, if the employee is merely isolated, but not exhibiting signs or symptoms of the virus, the employer should not count any of the leave against the employee’s FMLA allotment until there is a serious health condition rendering the employee unable to work.
- Benefits Continuation:An individual diagnosed with coronavirus may be eligible for FMLA leave, including the continuation of group health benefits. Employers should also have a policy in place for the continuation of group health benefits for individuals impacted by the outbreak but not otherwise eligible for FMLA leave, or those who exhaust FMLA leave and are not otherwise eligible under state law for continuation of benefits.
- A Reminder on HIPAA and PHI:If an employee is experiencing coronavirus symptoms or is infected, employers should adhere to HIPAA’s minimum necessary standards and only disclose this type of information to other employees with a legitimate need to know to process claims or administer employment-related action. Disclosure of de-identified or more general information is preferable for the workplace.
This coronavirus update for employers in the United States is one of a series dedicated to helping global workforce managers navigate the evolving challenges brought on by COVID-19. Expect regular articles such as this from the Asinta Partnership as the global impact of the coronavirus unfolds.