McKinley, Schneider Introduce Bipartisan Legislation to Prevent Hospital Cuts During COVID-19

Press Release

U.S. Representatives David B. McKinley, P.E. (R-W.Va) and Brad Schneider (D-IL) reintroduced bipartisan legislation to prevent cuts to hospital payments at a time when many providers are stretched thin and struggling with the public health crisis.

The Medicare Sequester COVID Moratorium Act delays cuts to Medicare reimbursement through the duration of the public health emergency, ensuring that cash strapped providers can stay focused on fighting COVID-19 instead of worrying about financial hardships.

"At a time when health care workers are on the front lines battling the COVID-19 pandemic, Congress should be doing everything within their power to ease their burden," said Rep. McKinley. "America's health care providers continue to be stretched thin and face serious financial challenges as a result of the economic and public health crisis. Suspending Medicare reimbursement cuts will allow hospitals and doctors to keep their doors open and continue providing critical care to their patients."

"COVID-19 cases continue to spike across the country. The dramatic growth in cases across the country means continued stress on our frontline health providers. Our hospitals are reporting devastating staffing shortages, overloaded ICUs, and diminishing supplies of personal protective equipment. Our health care professionals report growing burnout and hospitals are experiencing decreased revenue as more are forced to stop elective procedures. Now is not the time to reinstitute across the board cuts to our providers" said Congressman Brad Schneider.

Since 2011, Medicare payments have been subject to a 2% reduction, known as the Medicare sequester. Congress delayed these cuts through March 31, 2021 as part of the Bipartisan-Bicameral Omnibus COVID Relief Deal, which became law in December.

Unfortunately, the pandemic has not waned, and our providers now again face revenue cuts. According to the American Hospital Association, hospital operating margins are down an estimated 18.7%.

Background:

Congressman McKinley has been a consistent advocate for West Virginia hospitals. Since the COVID-19 pandemic hit he has:

In October, he led a bipartisan letter to HHS Secretary Azar expressing concerns over the Provider Relief Fund requirements to ensure hospitals have the ability to keep their doors open during the pandemic.
In July, he co-sponsored the Saving Rural Hospitals from Closure Act, which will help hospitals struggling for survival during the COVID-19 pandemic. The bill would forgive repayments, extend the timeline of repayments, and lower the interest rate of Medicare Advanced Payments (MAP) made during the pandemic.
The Medicare Sequester COVID Moratorium Act has received support from the following organizations:

American Hospital Association
Federation of American Hospitals
American Medical Association
America's Essential Hospitals
Association of American Medical Colleges
Illinois Hospital Association
American Physical Therapy Association
Large Urology Group Practice Association
Digestive Health Physicians Association
Infusion Providers Alliance
American Academy of Dermatology Association
American Optometric Association
Heart Failure Society of America
American Society for Gastrointestinal Endoscopy
Alliance of Community Health Plans
Ambulatory Surgery Center Association
America's Health Insurance Plans
America's Physician Groups
American Academy of Family Physicians
American Academy of Neurology
American Academy of Ophthalmology
American Academy of Physical Medicine & Rehabilitation
American Association for Homecare
American Association of Neurological Surgeons
American College of Cardiology
American College of Gastroenterology
American College of Osteopathic Family Physicians
American College of Physicians
American College of Surgeons
American Health Care Association
American Medical Group Association
American Medical Rehabilitation Providers Association
American Nurses Association
American Occupational Therapy Association
American Optometric Association
American Psychological Association
American Speech-Language-Hearing Association
American Society of Plastic Surgeons
Association of American Medical Colleges
Congress of Neurological Surgeons
Healthcare Leadership Council
LeadingAge
National Association for Behavioral Healthcare
National Hospice and Palliative Care Organization/Hospice Action Network
National Association of Spine Specialists
Outpatient Ophthalmic Surgery Society
Premier Healthcare Alliance
Private Practice Section of the American Physical Therapy Association
The Catholic Health Association of the United States
Visiting Nurse Associations of America/ElevatingHOME
Vizient, Inc.
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