Accessibility Tools

Skip to main content

Benefit Adjustments When COVID-19 Emergency Ends

Written on .

The Biden administration has announced that the COVID-19 emergency will end May 11, 2023.  Employers should prepare now for changes that will occur after the emergency declaration ends.

First, although employer plans are still expected to cover COVID-19 tests, employer plans will be able to require cost-sharing by beneficiaries for COVID-19 tests to match normal medical coverage of in-network services. Employer plans may continue covering COVID tests given in doctors’ offices as part of regular medical coverage. Health plan beneficiaries may have access to COVID tests through local governments or other sources.

Second, although most group plans are required to cover COVID vaccines as preventive services within the network, the government is expected to run out of money for paying for the vaccines this year.  The plans will have to bear the cost of the vaccines thereafter. Pfizer and Moderna are expected to raise prices significantly.

Third, federal funding for COVID treatments, like Paxlovid and Labevrio, will be exhausted this year. Plans will have to pay the full costs thereafter. 

Fourth, the transition from the federal government to the commercial markets paying for the tests, vaccines and treatments may be challenging. Employers want the IRS to issue guidance about pre-deductible coverage for COVID diagnosis and treatments under health savings account-eligible deductible health plans. It is not clear whether the current guidance will continue.

Fifth, on July 10, deadlines that were extended for special enrollment in health plans for events like losing coverage or having children will end. Employer plans must communicate to employees that the extended period for electing COBRA coverage will change from 1 year to 60 days.

Sixth, relaxed restrictions on telehealth and virtual care services for part-time and temporary staff will end. Unless Congress acts, employer plans will be out of compliance if part-timers and others who are not eligible for the major medical plan are allowed to use the virtual care services.

This article is part of our March 2023 Newsletter.

View newsletter online

Download the newsletter as a PDF

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.
trump 2024 poster on wood
Donald Trump not only won the Presidency, but also almost came close to winning a majority of the votes; the Republicans flipped four Sen...
a longhorn cow grazing outdoors in grass field
On November 15, 2024, in Commerce v. USDOL, a federal district court in Texas invalidated a Biden Administration regulation that had atte...
ripped american flag
Many politicians are running on pro-union platforms and often say unions are good for our economy.  But look at what is going on right no...
a group of people crossing the street
The Fair Labor Standards Act (FLSA) includes provisions known as the white-collar exemption, which carves out certain "executive, adminis...
aircraft carrier at sea
Many employers believe they know the ins and outs of handling maternity leave and military leave, but some issues are now rising that bea...
inclusive sign
Supposedly the oldest magazine in continual publication, The Economist, published in London, has devoted its September 21-27, 2024, editi...