Stand-alone Telehealth-Only Plan / Benefits After the End of the COVID-19 Public Health Emergency

[Scott A. Davis]

Can a small group (1-49) offer Stand-alone Telehealth-Only Plan / Benefits After the End of the COVID-19 Public Health Emergency May 11, 2023, to Full-Time, Part-Time, Seasonal, 1099 Employees?

I understand that relief is allowed for large employers (ALE) to continue to provide (stand-alone) solely telehealth and other remote-care benefits to employees or dependents who are not eligible for coverage under any other group health plan offered by the employer to the end of the 2023 plan year, including those benefit opt-outs, per Q&A #14, FAQ FFCRA Part 43 https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/faqs/aca-part-43.pdf , also written about by Thomson Reuters and Mercer more generally in https://www.mercer.com/en-us/insights/us-health-news/bipartisan-bill-seeks-stand-alone-telehealth-for-all-workers/.

Since telehealth only and other remote-care benefits are not listed as excepted benefits per https://www.law.cornell.edu/cfr/text/45/148.220, a stand-alone telehealth or remote service plan offer after the end of the COVID-19 Public Health Emergency would need to meet many rules applicable to group health plans under ERISA, COBRA, HIPAA and the Affordable Care Act (ACA) minimum essential coverage rule per Thomson Reuters and Q&A #14 above, even if offered by an small employer (1-49 FTEs), although a small employer (1-49 FTEs) is not required to offer ACA MEC or MVP coverage? Like restrictions of offering a stand-alone Health FSA without ACA MEC coverage by a small or large employer, of which the stand-alone Health FSA would not meet group health market reforms and ACA requirements for 100% preventive care benefits.

I am interested to know other's thoughts or research for small employers on this subject.