U.S. Sen. Bill Cassidy (R-LA) helped lead a bipartisan group of 33 senators in requesting additional financial help for healthcare providers seeking coronavirus-related assistance through Medicare’s Accelerated and Advance Payments Program.
“Our frontline health care providers and medical professionals across this country need financial support to continue their vital work in responding to COVID-19 and dealing with the economic consequences of this pandemic,” the senators wrote in an April 8 letter sent to U.S. Health and Human Services (HHS) Secretary Alex Azar and CMS Administrator Seema Verma.
Specifically, Sen. Cassidy and the lawmakers requested that the Centers for Medicare and Medicaid Services (CMS) waive or modify interest rates for healthcare providers seeking advanced funding under the program, which was expanded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to allow hospitals, physicians and other Medicare-participating providers to apply for upfront payments from Medicare to help cover revenue shortfalls as a result of COVID-19.
Based on current U.S. Treasury Department regulation and rates, the applicable interest rate is set at 10.25 percent for repayment of Medicare accelerated and advance payments for hospitals and other healthcare providers that have not completed repayment by the applicable date, according to their letter.
“Hospitals, physicians and other healthcare providers have significant concerns about the 10.25 percent interest rate and the implications of such interest rates on their ability to participate in the Accelerated and Advance Payments Program,” wrote Sen. Cassidy and his colleagues. “Given the unprecedented nature of this crisis, more flexibility on interest rates and repayment of accelerated and advance payments will be very important.”
The lawmakers asked if the CMS administrator would consider extending the existing 12-month period from the date of the first accelerated payment before requiring hospitals to repay the full balance; and if the HHS Secretary would use existing authorities to lower or waive the interest rate.
Among the senators who joined Sen. Cassidy in signing the letter were U.S. Sens. Shelley Moore Capito (R-WV), Martha McSally (R-AZ), Cory Gardner (R-CO), Steve Daines (R-MT) and Jeanne Shaheen (D-NH).