Morning Update - March 24
Helpful news on federal paid leave, health coverage resources, and assistance for hospitality workers
Good morning,
From my kitchen, I can see the snow clinging to the trees outside and the branches swaying just a bit in the wind. For Mainers, the late season snow isn’t unexpected but also may not be particularly welcome. Many of my neighbors are waking up to no power this morning, though we didn’t lose it at my house. The calendar said that spring arrived on Thursday, and I think a lot of us are ready to just get on with it. One of my friends on Facebook accused the snow (and power outages) of adding insult to injury.
But, as I watched the snow covered branches out my window this morning, I thought back to a visit I had just a few weeks ago (though it seems like years ago now) from my college best friend and one of her teenage sons. They live in the Florida Keys. When my friend asked her son what he wanted most for his birthday, he said, “To see snow.” And so, a hastily arranged plan involving discount airfare and free lodging with Auntie Heather was hatched. As we drove to the Western Maine mountains to find something more akin to snow than ice during this unusually warm winter, I asked the birthday boy if he had any specific requests for his trip. “I just want to see snow trees.” I blinked and glanced up at him in the rearview mirror, not sure what he was talking about. “You know, where the snow just covers the whole tree and sticks to it.” The next day, I took him high up on a mountain searching for some snow trees, but we didn’t quite find what he was looking for. This morning though, he would have been so impressed! (I took some photos this morning so that I can send them to him!)
And so, I am reminded to see the trees the way the birthday boy would have: to marvel at how lucky we are to live in such a beautiful place with four seasons that each have their own charm. I am also thankful that no one in my household needs to shovel that berm right this moment because we’re all staying home today. Hopefully, it will melt by evening and we’ll be on to spring.
The updates below are current to the best of my knowledge as of 6:00am on Tuesday, March 24. (I think maybe I write that line each morning in part as a reminder to myself of what day of the week it is. They are all blending together at this point!)
IRS Issues Helpful Guidance on Federal Paid Sick Leave
While we’re still waiting for the Federal government to act on a multi-trillion dollar relief package this week, Congress has already passed two major COVID-related bills in the last couple weeks – most notably one that created a Federally funded paid sick leave program for all employers with fewer than 500 employees. The Federal program provides for 10 federally funded sick days for workers and also allows for federal funding for leave for parents to care for children who are out of child care or school due to COVID related shutdowns. I haven’t talked much this here yet because, although sick leave and child care leave are sorely needed right now, at first blush the program looked like it might be financial disaster for struggling small businesses, requiring a long wait for quarterly payroll tax filings before tax credits could be recouped.
But yesterday, the IRS issued a bulletin that is extremely encouraging. It announced a plan to allow for the tax credit for paid sick leave and child care leave for qualifying workers to be taken immediately, by allowing employers to retain payroll taxes that the small business would have otherwise had to pay over to the government in the pay period. If the amount of the paid sick leave paid to workers exceeds the amount of withholding in that pay period, there will be a form to fill out to get a quick refund check from the IRS. There is also a reference in the bulletin to “self-employed individuals receiving an equivalent credit.” I don’t know exactly what that part means yet, but it is also quite encouraging. The IRS has promised additional guidance will be issued next week. I will update you with information as I receive it.
The Affordable Care Act Turns 10 – Options for Health Coverage After a Layoff
Yesterday was the 10th anniversary of the passage of the Affordable Care Act. The marking of that milestone made me realize that none of these morning updates so far have really focused on health care coverage in the age of COVID. So, let’s dig in on that this morning.
The Affordable Care Act provided extra incentives for states to expand eligibility for their Medicaid programs and, eventually, Maine joined this plan. We acted last year to finally extend eligibility for MaineCare, our Medicaid program, to all Mainers who make less than 138% of the poverty level, regardless of assets (so you can have some savings or own a house and still qualify). This is critical right now. If you’ve lost your job, you may qualify for MaineCare. You can apply here. If you’re eligible for MaineCare, it is a great option for health coverage with virtually no out of pocket costs if you get sick.
If you’ve lost your health insurance coverage in a layoff but aren’t eligible for MaineCare, there is another option too! Although the Affordable Care Act normally restricts sign-ups for individual health insurance through Healthcare.gov to a few weeks at the end of the calendar year, losing your health insurance through your job creates a new 60 day window, called a Special Enrollment Period, for you to sign up for coverage. You can walk through the Special Enrollment Period process on this website. Mainers with income up to 400% of the poverty level (up to $51,000 a year for a household of one person) will qualify for subsidies to reduce their monthly premiums. Some folks will even qualify for a plan with zero premiums due each month.
Now more than ever, it’s so important that everyone should have health insurance. Consumers for Affordable Health Care is going to be holding webinars on Wednesday and Thursday at 1pm to help explain all of the options to stay covered during this crisis. I highly recommend tuning in if you’ve found yourself without health insurance as a result of COVID layoffs. Click the link to register.
Maine Hospitality Workers Resource Guide
The Portland Food Map has just posted a list of very helpful resources for hospitality workers, compiled by Carolyn Richter. It includes critical links to several organizations that are or will be offering emergency cash relief to hospitality workers, as well as links to mental health organizations that can provide much needed support. It also has a compilation in bullet list form of many of the government-sponsored relief programs that I’ve described over the last week in these updates. I highly recommend it and plan to send it out to my staff today.
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Late last night, as the snow began to pile up outside, I dug to the bottom of my legislative inbox, but all of my other email inboxes and social media services are still a disaster of unanswered messages. So now more than ever, I would ask that you email heather.sanborn@legislature.maine.gov if you want to reach me. I’m answering the questions I can and forwarding on the ones that I cannot. Keep them coming.
My dog is anxious to have someone come play with her in our suddenly non-muddy back yard, so I’ll sign off for today.
Use your legs rather than your back to shovel this heavy wet snow (or just wait for it to melt), be well, and take care of each other.
With love,
Heather
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