Hospitals get extension of loan repayment in continuing resolution signed by President Trump
The American Hospital Association said it would continue to seek a permanent solution, including loan forgiveness.
President Trump signs a continuing resolution that includes an extension of hospital loan repayments. (Photo by Pete Marovich - Pool/Getty Images)
Hospitals that took advantage of federal loans to help them through the COVID-19 crisis have been given an extension to repay Medicare accelerated and advance payments.
Hospitals get an extension from 120 days of the loan to 29 months from the date of the first payment. During the first 11 months in which any such payment offsets are made, 25% of the amount is due; during the succeeding 6 months, 50% of the amount is due; and hospitals are being given 29 months from the date of the first payment before requiring that the outstanding balance be paid in full.
The measure was signed by President Trump earlier today as part of a continuing resolution to prevent a government shutdown.
The CR also makes changes to the interest rates for Medicare accelerated and advance payments and delays the start of $4 billion in fiscal year 2021 Medicaid disproportionate share hospital cuts.
WHY THIS MATTERS
Medicare accelerated and advanced payments have been a lifeline to many hospitals and health systems fighting the pandemic, said Rick Pollack, president and CEO of the American Hospital Association.
However, the AHA is looking for a permanent solution, including loan forgiveness. And it continues to advocate for extending the delay of Medicaid DSH cuts for the entirety of fiscal year 2021, he said.
THE LARGER TREND
The continuing resolution extends current federal funding levels through December 11.
The Senate voted in favor of the resolution, 84-10 on Tuesday night. The House passed the measure last week.
ON THE RECORD
"We thank Administrator Verma and CMS for their initial responsiveness to hospital concerns in helping to put these payment programs in place," said Rick Pollack, president and CEO of the AHA. "In addition, we appreciate the responsible manner in which they managed the recoupment process by calibrating it with the impending congressional action. Their approach avoided potential confusion and significant administrative burden at a time when hospitals are focused on the pandemic."
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com
