3/27/2020
Colorado
President Trump signed the $2.2 trillion Coronavirus stimulus package into law on Friday shortly after the House passed the bill via voice vote.
A few of the significant highlights include:
ACCOUNT BASED PLANS
Over-the-Counter Drugs and Menstrual Care Products - Provides that HSAs, FSAs and HRAs will again be able to pay for or reimburse for OTC drugs and medicines. In addition, expenses for menstrual care products will be treated as qualified medical expenses. This provision is effective for amounts paid and for reimbursements of expenses incurred after December 31, 2019.
Telehealth - Provides that payments for "telehealth and other remote care services" below the deductible will be permitted in an HSA-compatible HDHP. This provision is effective immediately and will last until December 31, 2021. Note: The bill does not define "telehealth and other remote care services."
CHARITABLE CONTRIBUTIONS
Allowance of partial above the line deduction – this provision encourages Americans to contribute to charitable organizations by permitting them to deduct up to $300 of cash contributions, whether they itemize their deductions or not.
Modification of limitations – this provision increases the limitations on deductions for charitable contributions by individuals who itemize, as well as corporations. For individuals, the 50% of AGI limitation is suspended for 2020. For corporations, the 10% limitation is increased to 25% of taxable income. This provision also increases the limitation on deductions for contributions of food inventory from 15% to 25%.
EDUCATION
Student Loans - The Dept. of Education will allow federal student loan borrowers to suspend payments through September 30, 2020 without penalty as the country battles the Coronavirus pandemic. Interest due on loans during the national emergency will not capitalize at any time during the emergency. The Secretary of Education will ensure that consumer reporting agencies treat loans during this period as if the borrowers were making on time, regularly scheduled payments.
Student Loans (Employer Payments) - This provision will exclude up to $5,250 in qualifying student loan repayments paid by the employer on behalf of the employee from income for income tax purposes.
HEALTH CARE
COVID-19 vaccine - Requires individual and group health plans to cover any preventative vaccine and any drugs to treat COVID-19 at zero cost-sharing within 15 days of receiving a rating by United States Preventive Services Task Force (USPSTF) or a recommendation from the Advisory Committee on Immunization Practices (ACIP).
For additional details on this topic, please see our previous post:
What's in the Senate's "historic" stimulus? (March 26)
https://tasccapitalconnection.com/2020/03/26/whats-in-the-senates-historic-stimulus/
The Governmental Affairs team continues to review the bill text and subsequent agency guidance; TASC will communicate further on this topic in the near future.
A few of the significant highlights include:
ACCOUNT BASED PLANS
Over-the-Counter Drugs and Menstrual Care Products - Provides that HSAs, FSAs and HRAs will again be able to pay for or reimburse for OTC drugs and medicines. In addition, expenses for menstrual care products will be treated as qualified medical expenses. This provision is effective for amounts paid and for reimbursements of expenses incurred after December 31, 2019.
Telehealth - Provides that payments for "telehealth and other remote care services" below the deductible will be permitted in an HSA-compatible HDHP. This provision is effective immediately and will last until December 31, 2021. Note: The bill does not define "telehealth and other remote care services."
CHARITABLE CONTRIBUTIONS
Allowance of partial above the line deduction – this provision encourages Americans to contribute to charitable organizations by permitting them to deduct up to $300 of cash contributions, whether they itemize their deductions or not.
Modification of limitations – this provision increases the limitations on deductions for charitable contributions by individuals who itemize, as well as corporations. For individuals, the 50% of AGI limitation is suspended for 2020. For corporations, the 10% limitation is increased to 25% of taxable income. This provision also increases the limitation on deductions for contributions of food inventory from 15% to 25%.
EDUCATION
Student Loans - The Dept. of Education will allow federal student loan borrowers to suspend payments through September 30, 2020 without penalty as the country battles the Coronavirus pandemic. Interest due on loans during the national emergency will not capitalize at any time during the emergency. The Secretary of Education will ensure that consumer reporting agencies treat loans during this period as if the borrowers were making on time, regularly scheduled payments.
Student Loans (Employer Payments) - This provision will exclude up to $5,250 in qualifying student loan repayments paid by the employer on behalf of the employee from income for income tax purposes.
HEALTH CARE
COVID-19 vaccine - Requires individual and group health plans to cover any preventative vaccine and any drugs to treat COVID-19 at zero cost-sharing within 15 days of receiving a rating by United States Preventive Services Task Force (USPSTF) or a recommendation from the Advisory Committee on Immunization Practices (ACIP).
For additional details on this topic, please see our previous post:
What's in the Senate's "historic" stimulus? (March 26)
https://tasccapitalconnection.com/2020/03/26/whats-in-the-senates-historic-stimulus/
The Governmental Affairs team continues to review the bill text and subsequent agency guidance; TASC will communicate further on this topic in the near future.
Source: TASC Capitol Connection