CARES Act Helps Healthcare Providers
New Law Assists Those Dealing with the COVID-19 Pandemic
By Jennifer Allen
The impact of the COVID-19 pandemic looms large over the global economy – especially for healthcare providers and professionals. On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law. This $2 trillion stimulus package is aimed at providing much-needed relief for businesses and individuals, alike.
Many pieces of the CARES Act impact the healthcare industry directly. Although the information that follows is not exhaustive, it’s a summary of the larger healthcare portions. Reach out to your ABBB advisor to learn more about the legislation’s impact on you and your practice.
There's good news for healthcare providers. As a way to help boost revenue:
Emergency Funds & Loans Available
Provider Payments Accelerated
The Centers for Medicare and Medicaid Services (CMS) payment policy was expanded to accelerate payments. This includes:
- Increased prepayment from 70% to 100% of expected Medicare payments. The rate is 125% for critical access hospitals.
- Increased length of time for accelerated payments from three to six months.
- Delayed recoupment of overpayment from 90 to 120 days.
- Extended due dates for outstanding balances from 90 days to one year.
- FACT SHEET: Centers for Medicare & Medicaid Services’ Accelerated & Advanced Payments
Keep an Eye Out for More Information
While the CARES Act provides good news to the healthcare industry, you never know what may happen next. There are still many unknowns about COVID-19 and the legislation that will come about as a result. From clarification on the CARES Act to new legislation, the government is stepping up to assist you in a big way.
Stay tuned for more information and, as always, contact your ABBB advisor for more information.
For more information about the resources available to you and your business, visit our Coronavirus Resource Center.