President Signs $1.9 Trillion COVID-19 Relief Package

On March 11, 2021, President Biden signed H.R. 1319, the American Rescue Plan Act of 2021 (ARP), a more than 600-page coronavirus relief package that provides $1.9 trillion in spending. The law was passed using budget reconciliation which required 51 votes for passage in the Senate. The legislation includes economic assistance programs related to the COVID-19 PHE and includes the following homecare and hospice related provisions:

1.   The ARP provides for a 10% one year increase in funding for the Federal Medical Assistance Program (FMAP), the federal share of Medicaid, beginning on April 1st. Funds are specifically designated for Home & Community Based Services and may be applied towards:

  • Home Health Care services
  • Personal care services
  • PACE services
  • HCBS Services
  • Case Management services
  • Rehab services

2.   A Rural Provider Relief Fund Allocation of $8.5 billion has been allocated for rural providers. The original draft of the legislation limited this provision to providers located in rural areas, but now includes providers that may be located in urban areas, but serve patients in rural areas.

3.   $12.2 billion has been provided to increase vaccination supplies and distribution capacity designed to speed up vaccine administration. These provisions will prove very helpful to home care and hospice providers and to their clients/patients in coming days.

4.   The ARP allocates $140 million to support healthcare providers’ mental health and emotional well-being.

While we are grateful to Congress and the President for the support of home care and hospice beneficiaries and those who provider their care, more action is needed, including further suspension of the Medicare sequester and passage of the long-anticipated HEAT Act that would provide for telehealth reimbursement in home health. We also look forward to the momentum building behind the National Association for Home Care & Hospice’s call for “Choose Home” legislation that would create an enhanced home health benefit, serving as an alternative to the skilled nursing facility benefit.

It is anticipated that the House will vote on an extension of the Medicare sequester moratorium during the week of March 15th, prior to its scheduled expiration on March 31st. The National Hospice & Palliative Care Organization has prepared the following link to Ask your federal legislators to support the Medicare Sequester COVID Moratorium Act (H.R. 315).