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MACPAC Urges HHS to Provide Relief to Medicaid Providers

May 06, 2020

McDermott+Consulting

On April 30, the Medicare and CHIP Payment and Access Commission (MACPAC) sent a letter to the Secretary of Health and Human Services (HHS) urging the Administrator to speed relief to Medicaid providers across the nation. This is the second letter the Commission has sent to HHS. After the initial distribution of $30 billion in provider relief funds were distributed based on Medicare fee-for-service claims, the Commission expressed their concern.

In the letter, MACPAC provides details on the agency’s flawed distribution formulas for the first $50 billion in provider relief funds. The first distribution of funds did not provide significant relief, if any, to providers serving Medicaid beneficiaries. The Commission also called for increased transparency in how the agency is distributing the remaining funds.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) and the Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-266) appropriated in total $175B dollars to the Provider Relief Fund. To date, HHS has allocated $72.6B in funds to Medicare providers, hospitals in COVID-19 hotspots, rural providers, and the Indian Health Service. The agency has yet to provide relief funds targeting Medicaid providers.

MACPAC is a non-partisan legislative branch agency that provides policy and data analysis and makes recommendations to Congress, the Secretary of the U.S. Department of Health and Human Services, and the states on a wide array of issues affecting Medicaid and the State Children’s Health Insurance Program (CHIP).

Stay up-to-date on COVID-19 emerging issues through the McDermottPlus Coronavirus Resource Center or the McDermott, Will & Emery Coronavirus Resource Center.

 

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For more information visit the McDermottPlus Payment Innovation Resource Center or contact Sheila Madhani at 202-204-1459/smadhani@mcdermottplus.com, Mara McDermott at 202-204-1462/mmcdermott@mcdermottplus.com or Rachel Stauffer at 202-204-1460/rstauffer@mcdermottplus.com.

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