HHS running out of money to pay providers for treating uninsured COVID-19 patients

HHS running out of money to pay providers for treating uninsured COVID-19 patients

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A federal program that reimburses healthcare providers that care for uninsured COVID-19 patients is expected to run out of money by spring or summer.

The Provider Relief Fund has paid out more than $17 billion to providers treating, testing and vaccinating the uninsured throughout the pandemic. The Health and Human Services Department program has been a lifeline for providers, especially in states such as Texas and Florida with high rates of people who don’t have health coverage.

But there’s only $7.6 billion left and the money will run out in the coming months, an HHS spokesperson said. Congress isn’t currently considering making more funding available, meaning providers and patients are likely to soon have to bear the costs themselves.

Hospitals continue to urgie Congress to replenish the Provider Relief Fund, which has helped offset providers’ pandemic-related losses.

“One of the most helpful and patient-oriented use of the PRF was to help those people who for whatever reasons are uninsured and suffer from COVID-19,” said Federation of American Hospitals CEO Chip Kahn. “It meant that no one should have any reluctance to go to the hospital if they have COVID but no insurance.”

Amid the the omicron variant’s wide spread, HHS has been processing about $500 million in claims for uninsured patients, so the fund is quickly depleting, the HHS spokesperson said.

Of the $17 billion HHS has distributed to providers from the uninsured fund, nearly $10 billion paid for testing, more than $6 billion reimbursed for treatment and the remainder covered vaccinations.

Providers in states with high uninsured rates and in states that haven’t expanded Medicaid to low-income adults under the Affordable Care Act are among those receiving the most money, according to a Modern Healthcare analysis of HHS data.

If the Provider Relief Fund runs out of money and Congress doesn’t appropriate more, hospitals could be left footing the bill. Not-for-profit hospitals and many for-profit hospitals must provide financial assistance to people with low incomes, many of whom are uninsured.

“For some hospitals out there, it’s been a really good deal if their number of uninsured is high,” said Paul Lee, senior partner and founder of Strategic Health Care, a consulting firm in Washington that works with hospitals.

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