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Reps. Schneider, Kind Call on Trump Administration to Give Immediate Financial Relief to Frontline Health Care Providers

August 24, 2020

WASHINGTON – Today, Rep. Brad Schneider (IL-10) and Rep. Ron Kind (WI-03) sent a letter to Centers for Medicare and Medicaid Services (CMS) Administrator Seema Verma requesting immediate financial relief and certainty for hospitals, physicians, and health providers on the front lines of the COVID-19 pandemic.

"Our medical providers are sacrificing every day to ensure we as a country can stay healthy and contain this virus," said Rep. Schneider. "Now is not the time to undercut their financial security with harsh loan repayment terms. We need immediate action by CMS to give our providers – and the patients they serve – the certainty they deserve."

At the outset of the pandemic, Medicare providers have withdrawn loans from the federal government to cover high, upfront expenses related to COVID care and ensure their financial stability resulting from revenue shortfalls. The loan program, known as the Accelerated and Advance Payment (AAP) program, was expanded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and is administered by CMS. This program has been a critical lifeline to our providers nationwide, and to date has delivered more than $100 billion in loans to frontline providers.

However, harsh repayment terms stipulated by CMS as well as the CARES Act stand to leave providers in an even worse financial position. Without immediate action by CMS, providers could have 100% of their Medicare claims for services already rendered recouped as early as this month. Providers, particularly those in rural and underserved areas, rely on consistent revenue for Medicare services to ensure their financial wellbeing.

You can find a copy of the letter here.