Coalition of National Healthcare Organizations Calls on Congress to Protect Providers from Payment Cuts

Feb. 3, 2021
On Feb. 3, a coalition of 43 national healthcare associations sent a letter to the four senior national party leaders in Congress, asking them to pass a bipartisan bill to protect providers from payment cuts

On Wednesday, February 3, a coalition of 43 healthcare associations and organizations sent a letter to the four senior leaders in both parties, in both houses of the U.S. Congress, asking them to pass legislation that had been introduced into the House of Representatives on Jan. 29, H.R. 315, the Medicare Sequester Moratorium Act, introduced by Rep. Brad Schneider (D.-Ill.) and David McKinley (R.-W.V.), which would prevent cuts to provider payments through the duration of the public health emergency.

As noted on Rep. Schneider’s website, “H.R. 315, the Medicare Sequester COVID Moratorium Act would delay the Medicare sequester through the duration of the public health emergency, ensuring that providers can stay focused on treating and eradicating COVID-19 instead of worrying about their bottom line. Since 2011, Medicare payments have been subject to a 2% reduction, known as the Medicare sequester. However, recognizing our providers’ heroic work and dire circumstances, Congress delayed the Medicare sequester through April 1, 2021, as part of the Consolidated Appropriations Act, 2021. Unfortunately, the pandemic has not waned, and our providers now again face revenue cuts when hospital operating margins are down an estimated 18.7%, according to the American Hospital Association. Our providers need the reassurance that they will face not unnecessary cuts until the pandemic has completely subsided.” “COVID-19 cases continue to spike across the country. The dramatic growth in cases nationwide 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. Reinstating across the board cuts to our providers now would create unnecessary burdens at the worst possible time,” said Congressman Brad Schneider, in the press release posted to his office’s website.

And Congressman McKinley said, “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. 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.”

And on his website, Congressman McKinley added that “Since 2011, Medicare payments have been subject to a 2-percent 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 percent,” he added.

The co-sponsors noted on that day that “The bill has also received support from the following organizations: American Hospital Association, Federation of American Hospitals, American Medical Association, Illinois Hospital Association, Association of American Medical Colleges, American Physical Therapy Association, American Academy of Dermatology Association, and the American Optometric Association.”

In an effort to promote the bill, the coalition of 43 healthcare organizations addressed Speaker of the House of Representatives Nancy Pelosi (D.-Calif.), Senate Majority Leader Chuck Schumer (D.-N.Y.), Senate Minority Leader Mitch McConnell (R.-Ky.), and House Minority Leader Kevin McCarthy (R.-Calif.), thus:

“Dear Speaker Pelosi, Majority Leader Schumer, Minority Leader McConnell, and Minority Leader McCarthy: The COVID-19 pandemic continues to rage across the United States and around the world. As noted by the Acting Secretary of the U.S. Department of Health and Human Services, Norris Cochran, the declared COVID-19 Public Health Emergency (PHE) is expected to continue through the end of 2021.

“On December 27, 2020, The Consolidated Appropriations Act of 2021 was signed into law, providing a three-month extension (until March 31st) of the Medicare sequester moratorium as originally enacted in The CARES Act. While the undersigned organizations are very appreciative of this short-term extension, we once again ask Congress to fully extend the Medicare sequester moratorium through the end of the COVID-19 Public Health Emergency. The months ahead will be difficult as our nation launches an unprecedented effort to vaccinate the vast majority of Americans, while we simultaneously face the spread of new and potentially more harmful COVID-19 variants. Health care providers across the spectrum are ready to meet this challenge, but we need Congressional help now,” the coalition’s leaders stated.

“As Congress negotiates its next COVID-19 relief package, we urge the inclusion of H.R. 315, Medicare Sequester COVID Moratorium Act – bipartisan legislation introduced by Reps. Brad Schneider (D-IL-10) and David McKinley, P.E. (R-WV-1) that will extend the Medicare sequester moratorium through the PHE,” they wrote. “We need every resource at our disposal to meet the significant challenges that remain, especially as health care providers continue to endure financial strain caused by the pandemic. Now is not the time to cut Medicare reimbursements that are necessary to providing care to our communities.”

The letter was signed by these 43 organizations:

> Alliance of Community Health Plans
>  Ambulatory Surgery Center Association
> America’s Essential Hospitals
> America’s Health Insurance Plans
> America’s Physician Groups
> American Academy of Dermatology Association
> 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 Association
> American Medical Group Association
> American Medical Rehabilitation Providers Association
> American Nurses Association
> American Occupational Therapy Association
> American Optometric Association
> American Physical Therapy Association
> American Psychological Association
> American Speech-Language-Hearing Association
> Association of American Medical Colleges
> Congress of Neurological Surgeons
> Digestive Health Physicians Association
> Federation of American Hospitals
> Healthcare Leadership Council
> Infusion Providers Alliance
> Large Urology Group Practice Association
> LeadingAge
> National Association for Behavioral Healthcare
> National Hospice and Palliative Care Organization / Hospice Action Network
> 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
> Vizient, Inc.

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