Back to News

More COVID-19 Emergency Funding for Health Care Providers

Published on

April 27, 2020

In response to pleas from hospitals and health care providers for more COVID-19 relief, the U.S. Congress passed the Health Care Enhancement Act as part of a new $484 billion COVID-19 stimulus package. Dubbed “CARES Act 3.5,” the act generally expands the emergency funding already approved by Congress. The act also adds new funding to support widespread coronavirus testing.

CARES Act 3.5 authorizes an additional $75 billion for the Public Health and Social Services Emergency Fund to assist Medicare providers that incurred expenses or lost revenues during the COVID-19 crisis. The spending and record-keeping requirements for recipients generally remains unchanged. However, eligibility for funding has been expanded to include non-Medicare recipients, such as Medicaid providers and public health agencies, as well as some private entities approved by the Department of Health and Human Services. In order to meet eligibility criteria, the recipient must be engaged in the diagnosis, testing or care of individuals with possible or actual cases of COVID-19, as broadly applied.

In addition, CARES Act 3.5 authorizes $25 billion in funding for COVID-19 testing. The act grants funding for various testing initiatives across the country, and for COVID-19 hot-spots in particular. This includes funding for federal, state and local agencies, as well as community health centers and rural clinics. The act also allocates $1 billion to cover “testing costs” for the uninsured. To ensure that this emergency funding is used appropriately, the act allocates $6 billion for federal oversight activities.

The additional $75 billion in emergency funding authorized by Congress supplements the $50 billion in emergency payments already on its way to health care providers, as authorized by the CARES Act. $30 billion of CARES Act funding was sent earlier this month, and the remaining $20 billion will be distributed shortly based upon the provider’s Medicare fee-for-service revenues.

Now that emergency funding is available to non-Medicare providers as well, all Medicaid providers, nursing facilities, home care agencies and others engaged in responding to COVID-19 crisis should assess their eligibility for funding, and make application for relief if needed. Recipients should keep in mind that funds must be used appropriately and that a full accounting may be required at a later time. Still, this emergency funding is intended to broadly cover all reasonable efforts undertaken by providers to care for patients, seniors and the nation’s most vulnerable during the COVID-19 pandemic.

If you have any questions about this latest round of funding, please contact me or any member of the Barley Snyder Health Care Industry Group or Senior Living Industry Group.


Related News

View More News
News Alert
August 30, 2023

Spreading the Liability for Ostensible Agents: PA Supreme Court Paves the Way for Hospitals to Seek Contribution from Employers of Independent Physicians in Professional Liability Actions 

On July 28, 2023, the Pennsylvania Supreme Court issued an opinion recogniz...

Learn More
Press Release
August 17, 2023

Barley Snyder Attorneys Recognized by Best Lawyers in America

For Immediate Release Lancaster, Pa. – Fifty Barley Snyder attorneys have...

Learn More
News Alert
August 15, 2023

Social Media for Health Care Employees: It’s Not All Song and Dance

A jury in Atlanta, Georgia, recently cleared an anesthesiologist of liabili...

Learn More

Other Upcoming Events

View All Upcoming Events
Oct
04
3:00 pm
-
6:00 pm
event
Location

2023 York Business Seminar

Learn More
Oct
10
3:00 pm
-
6:00 pm
event
Location

2023 Harrisburg Business Seminar

Learn More
Oct
18
3:00 pm
-
6:00 pm
event
Location

2023 Reading Business Seminar

Learn More

Get in Touch

Our attorneys, paralegals and staff look forward to hearing from you. Please reach out to let us know how we can help.

Get In Touch
RECOGNIZED IN
Super Lawyers
Best Law Firms US News
Best Lawyers