The AHA today urged the Department of Health and Human Services and Centers for Medicare & Medicaid Services to exercise existing authorities to waive interest or substantially reduce the interest rate on any balance owed on accelerated/advanced payments made under section 3719 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the March 28 expansion announcement by CMS.

The “high interest rate can put hospitals at further financial risk while they are already vulnerable, and may prevent hospitals from requesting crucial accelerated/advanced payments,” AHA wrote.

AHA said that HHS and CMS have at least four mechanisms available to waive or reduce interest on accelerated/advanced payments owed and none requires rulemaking. These include waiving the imposition or collection of interest utilizing HHS’ existing waiver authority; employing CMS authority to refrain from issuing a demand letter; announcing that HHS will use the 2% interest rate set by the Secretary of the Treasury; or entering into a contract/repayment arrangement that uses a lower interest rate.

Related News Articles

Headline
The Health Resources and Services Administration yesterday awarded $15 million in Coronavirus Aid, Relief and Economic Security Act funds to 52 tribal health…
Headline
The COVID-19 pandemic has changed a lot across the health care landscape, including how care teams communicate, interact and collaborate with others. In this…
Headline
The Department of Health and Human Services’ Office of the Assistant Secretary for Preparedness and Response yesterday released resources focused on…
Headline
The Federal Emergency Management Agency this month issued COVID-19 pandemic operational guidance for the forthcoming hurricane season. Included in the document…
Headline
The Food and Drug Administration May 27 authorized the emergency use of the Stryker Sustainability Solutions VHP N95 Respirator Decontamination System during…
Headline
A new Centers for Disease Control and Prevention study released today shows community transmission of COVID-19 in the U.S. was occurring in February of this…