Congress’ big Stimulus Package

Texas Border Business

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By Bob Herman

Congress’ big stimulus package would provide more than $100 billion and several favorable payment policies to hospitals, doctors, and others in the health care system as they grapple with the coronavirus outbreak, Axios’ Bob Herman reports.

The big picture: Hospitals, including those that treat a lot of rural and low-income patients, are getting the bailout they asked for — and then some. 

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The cornerstone provision is a no-strings-attached $100 billion fund for hospitals and other providers so they “continue to receive the support they need for COVID-19 related expenses and lost revenue,” according to a summary of the legislation.

• It’s unclear how that money would be divvied up.

The bill provides many other incentives for the industry.

• Hospitals that treat Medicare patients for COVID-19 will get a 20% pay increase for all services provided. That means Medicare’s payment for these types of hospital stays could go from $10,000 to $12,000, depending on the severity of the illness.
• Employers and health insurers will be required to pay hospitals and labs whatever their charges are for COVID-19 tests if a contract is not in place. By comparison, Medicare pays $51.33 for a commercial coronavirus test.
• Medicare’s “sequestration,” which cuts payments to providers by 2%, will be lifted until the end of this year.
• Labs won’t face any scheduled Medicare cuts in 2021 and won delays in future payment cuts as well.

What’s missing: Patients who are hospitalized with COVID-19 could still be saddled with large, surprise bills for out-of-network care.

• There also are no subsidies for COBRA coverage, which employers wanted for people who lost their jobs. However, people who are laid off are able to sign up for a health plan on the Affordable Care Act’s marketplaces or could qualify for Medicaid.

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