COVID-19 Funding, Updates
The COVID-19 situation is rapidly developing, and from all apparent evidence, will continue to have a profound impact on the country for weeks, if not months to come. In a period of changing events, it is difficult to keep track of resources that are available, including the various funding packages being provided by Congress. CLA is actively monitoring and analyzing the various pieces of legislation coming out of Washington, D.C. One funding package has already been enacted, and a second one is in process right now.
We focus today’s blog on the first funding package, the Coronavirus Preparedness and Response Supplemental Appropriations Act, and provide links to available resources to help guide your organization. We’ll also give you a glimpse at major policies in the second package, and will certainly provide more details upon enactment. Throughout this situation, please reach out if you have questions.
Coronavirus Preparedness and Response Supplemental Appropriations Act: Public Law 116-123
The Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020 was signed by the President on March 6, 2020. This package is largely targeted at public health preparedness domestically and globally.
The $8.3 billion package includes the following funding allocations:
- $2.2 billion dollars for the Centers for Disease Control and Prevention (CDC). There are several required distributions: $950 million directed to states, local, territories and tribes to support various public health activities. Of that $950 million, $475 million must be allocated within 30 days and no less than $40 million specifically allocated to tribes, tribal organizations, urban Indian health organizations or health service providers to tribes. Finally, $300 million is for global disease detection and emergency response.
- $3.1 billion to the Office of the Secretary of Health & Human Services to prevent, prepare for, and respond to coronavirus, domestically or internationally, including the development of necessary countermeasures and vaccines, prioritizing platform-based technologies with U.S.-based manufacturing capabilities, and the purchase of vaccines, therapeutics, diagnostics, necessary medical supplies, medical surge capacity, and related administrative activities. Of this amount, $100 million must go to the “Health Resources and Services Administration—Primary Health Care” for grants under the Health Centers Program to prevent, prepare for, and respond to coronavirus.
- $836 million to the National Institutes of Health to prevent, prepare for, and respond to coronavirus, domestically or internationally
- $61 million to the Food & Drug Administration for the development of necessary medical countermeasures and vaccines, advanced manufacturing for medical products, the monitoring of medical product supply chains, and related administrative activities.
- $20 million to the Small Business Administration to administer the increased loan volume it expects to see.
- Additional funds for embassies, global assistance.
On March 11, 2020, the Centers for Medicare & Medicaid Services (CMS) announced the CDC was awarding over $560 million to states, localities, territories, and tribes. The CDC will use existing networks to reach out to state and local jurisdictions to access this initial funding. View the list of CDC funding actions by jurisdiction.
Telehealth Waiver
Also in this funding package is telehealth waiver authority that allows the Secretary of Health and Human Services (HHS) to waive certain Medicare telehealth restrictions during the coronavirus public health emergency.
Medicare providers are allowed to furnish telehealth services to Medicare beneficiaries regardless of whether the beneficiary is in a rural community, in the home and to allow the use of a phone if there is real-time audio/visual capability.
The provider must have provided the individual an item or service during the 3-year period ending on the date such telehealth service was furnished; or is in the same practice (as determined by tax identification number) of a physician or practitioner who furnished such an item or service to such individual during such period.
CLA Reminder: The telehealth waiver outlined above is important, but there are still various regulatory requirements with which providers will have to comply. In addition, the second funding package below would amend this telehealth waiver if enacted. Regardless, CLA would remind our readers that CMS made improvements in virtual health reimbursements over the past few years and those could also be utilized. Under the 2019 and 2020 physician fee schedule rules, CMS opened up opportunities to receive reimbursement for virtual communications, e-visits, and for interprofessional consultations.
Pending Package: Families First Coronavirus Response Act, HR 6201
Congress is deliberating a second package of funding largely geared at helping individuals and families during the pandemic. This package was approved by the U.S. House of Representatives, but at the time of writing, has not yet passed the U.S. Senate. This package would:
- Require private and government health care programs cover and have no cost-sharing for COVID-19 testing.
- Provide $1 billion to pay provider claims for COVID-19 testing and related services for the uninsured.
- Provide for Emergency Family & Medical Leave along with emergency sick leave in certain conditions.
- Provide $1 billion for additional assistance to states related to unemployment insurance benefits.
- Provide states with enhanced Medicaid funding via a 6.2% FMAP increase.
- Provide additional funds for nutritional assistance.
ADDITIONAL RESOURCES
- Centers for Disease Control. The CDC’s main COVID-19 web page includes situational updates, information for schools, communities, health departments, providers, travelers, laboratories among others.
- Centers for Medicare & Medicaid Services. CMS’s COVID-19 emergency page includes FAQs for providers and guidance on billing/coding, coverage, clinical and technical issues. CMS has also released a list of available 1135 blanket waivers, including the 25 bed limit for Critical Access Hospitals and the 3-day hospital stay requirement for nursing homes among others.
- Johns Hopkins University COVID-19 Dashboard. Access the worldwide, real-time COVID-19 dashboard developed by Johns Hopkins University. At this link, information is available related to the total number of cases, deaths, recoveries and active cases by country.
- World Health Organization. WHO’s landing COVID-19 page provides FAQs, travel guidance, situation updates and more.
Jennifer Boese is the Director of Health Care Policy at CLA. She is a highly successful public policy, legislative, advocacy and political affairs leader, including working in both the state and federal government as well as the private sector. She brings over 20 years of government relations and public policy knowledge with her to CLA. Well over half of her career has been spent dedicated to health care policy and the health care industry, affording her a deep understanding of the health care market and environment, health care organizations and health care stakeholders. Her role at CLA is to provide thought leadership, policy analysis and strategic insights to health care providers across the continuum related to the industry's ongoing transformation towards value. A key focus of that work is on market innovations and emerging payment models. Her goal is to help CLA clients navigate and thrive in an increasingly dynamic health care environment.
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