Coronavirus Relief Funds to Pay for Care for Uninsured

The U.S. Department of Health and Human Services (HHS) is using a $100 billion hospital and provider relief fund to pay hospitals at Medicare rates for uncompensated COVID-19 care for uninsured individuals. Funds will be distributed through the Public Health and Social Services Emergency Fund, which supports the National Disaster Medical System. According to HHS Secretary Alex Azar, hospitals that receive funds are banned from balance billing; however, he did not specify what cost-sharing obligations might be imposed for uninsured COVID-19 patients or whether ancillary providers will be included in the ban.

The White House administration has framed the relief fund as an alternative to reopening the Affordable Care Act exchanges for those who have lost employment and, thus, healthcare benefits. Health Management Associates, a leading independent national research and consulting firm in the healthcare industry, has predicted up to 40 million people in the U.S. could be uninsured if job losses from the coronavirus pandemic are severe.