Healthcare Reform

INTRODUCTION
The COVID-19 (coronavirus) event is a dynamic & global situation that we are continuing to monitor and address at Lawley. Our insurance, employee benefits, retirement, risk & claims teams are reviewing all new pertinent information and we will produce updates as deemed important and necessary to our clients and the communities we serve. Additionally, our hearts go out to all those affected by COVID-19.

In this notification, please find information that specifically relates to insurance coverages and employee benefits as of 3.13.2020:

PREVENTION & CONTROL MEASURES
Taking proper prevention and control measures is imperative. Please refer to this outline as produced by the Center for Disease Control Prevention (CDC):

  • Wash your hands regularly with soap and water for at least 20 seconds. Use hand sanitizer that contains at least 60% alcohol if soap and water are not available
  • Avoid touching eyes, nose & mouth with unwashed hands
  • Avoid close contact with people who are sick
  • Actively encourage sick employees to stay home to prevent the spread of illness
  • Cover your nose and mouth when coughing or sneezing with your arm or tissue. Make sure to discard tissues in the trash
  • Clean and disinfect surfaces that are frequently used such as desks, phones, computer keyboards, etc. on a regular basis

For further information, please visit the official CDC website on Interim Guidance for Businesses and Employers which you can find here.

HUMAN RESOURCE INFORMATION
It is essential that businesses take steps to ensure the health and well-being of their employees and to protect their operations as follows:

  • Review your Emergency Business Contingency Plan. The Lawley Risk Management Team is prepared to review any issues or concerns you may have and provide guidance
  • Make sure you implement proper health and safety measures to protect your employees and safeguard your operations
  • Institute remote work policies as needed and provide the essential resources employees will require to do so
  • All common areas, work stations, and equipment should be disinfected on a routine basis
  • Review your contingency plans with any vendors or suppliers you have
  • Take time to review your corporate travel plans and evaluate as needed to what is essential and what is non-essential

DAMAGE TO PROPERTY & BUSINESS INTERRUPTION INSURANCE
With national workforce disruption, organizations are finding day-to-day operations irregular. Our insurance professionals are here to help you answer any questions as pertaining to your specific commercial insurance involving business interruption insurance, including what is covered and what is not. We are not able to offer a blanket comment on business interruption insurance coverage in regards to coronavirus situations because every situation is unique and every client has different policies in place that should be reviewed with someone on our team.
Click here to submit a specific question to one of our comprehensive insurance professionals.

HEALTH INSURANCE & NYDBL/PFL
Governor Cuomo directed NY insurers to waive cost-sharing for coronavirus testing. The carriers and our teams are working with Department of Financial Services to understand better how this is going to be implemented, how this will affect the experience of a plan, and what the impact is on HSA eligibility. The Internal Revenue Service (IRS) has advised on 3.11.20 that high-deductible health plans (HDHPs) can pay for 2019 novel coronavirus, or COVID-19, testing and treatment without jeopardizing their status as HDHPs. According to the IRS, this also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA). You can read the IRS’s full notice here.

Based on current definitions in the NYS Disability Benefits Law, a preventative quarantine would not constitute a disability event and therefore, would not be a covered claim under the insured’s DBL/PFL policy. We will continue to update and keep you current so that you have the most up to date information to explain to your employees and retirees (if applicable).

RETIREMENT PLANS AND 401(K)S
Global stock markets have entered “correction” territory, defined as a 10% decline from the index high. This is in large part due to the uncertainty surrounding the new coronavirus. Epidemics in the past have also led to sharp pull-backs in the markets. Over the long-term, however, the stock market has weathered past epidemics. During times of uncertainty and market volatility, while it is prudent for plan participants to “stay the course”, it is also prudent for them to review their investment strategies to ensure they are on the most appropriate path.

Please reach out to the Lawley Retirement Advisors team for more information and advice about “staying the course” and reviewing your current investment strategies. Additional information is also available from Lawley’s Retirement Advisors for plan sponsors who want to communicate to their plan participants.

TRAVEL INSURANCE
It is safe to say one of the industries hit hardest by the coronavirus situation is the travel industry. Because we work with carriers to provide travel insurance to our clients, we want to ensure you understand what is covered by these policies and what is not. If you have a trip planned to an area with a known coronavirus epidemic, and want to cancel, your travel insurance may not cover cancellation. This varies from state to state. If you are wondering about travel insurance protections, please reach out to our in-house travel insurance contact to find out more.

RESOURCES
As an independent agent, we use partner resources, such as the Independent Insurance Agents & Brokers of America, a.k.a. Big I, and Professional Insurance Agents (PIA) network. In the wake of the coronavirus situation, they have prepared resources pages with up to date information. You can visit those pages here and here. Additional relevant content has been created by these partner resources to help with disaster preparedness, losses of business income, and workers’ compensation information.

Also, please refer to these articles for more information:

CLAIMS
Should you feel that your business has sustained a loss as a result of the COVID-19 situation, it is imperative that any damages are well-documented. Our claims consultants are prepared to assist on any potential claim and facilitate the investigation and coverage review of the matter with your carrier.

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Again, this situation is evolving every day. Our teams are constantly monitoring and adjusting strategy for not only our own organization, but for all of our clients. Our teams are available to answer any questions. Please follow all government and CDC mandated procedures and stay up to date on this situation.