U.S. Rep. Doris Matsui (D-CA) and Rep. Chris Stewart (R-UT) are finalizing bipartisan legislation to provide temporary 340b program requirement flexibilities to hospitals during the COVID-19 pandemic. The bill will protect hospitals from losing 340b eligibility and waive 340b statutory requirements. Similar legislation sponsored by Sens. John Thune (R-SD), Debbie Stabenow (D-MI), Bob Portman (R-OH), Tammy Baldwin (D-WI) Shelley Moore Capito (R-WV), and Benjamin Cardin (D-MD), S.4160, does not have the 340b hospital waiver. Senators Matsui and Stewart also tried getting the 340b legislation flexibilities passed in the recent HEROES act, but Senate Leaders and the White House are currently negotiating what will be put into the next package. Stewart states that many providers will become ineligible for 340b drug discounts due to the pandemic.

Senators Roger Wicker (R-MS) and Tina Smith (D-MN) introduced bipartisan legislation that would waive Small Business Administration (SBA) affiliation rules for rural hospitals. The bill would allow non-profit critical access hospitals and hospitals that serve rural areas to qualify for Paycheck Protection Program (PPP) loans by removing their SBA affiliation status. The CARES Act established the PPP to provide relief to small businesses with fewer than 500 employees in the form of forgivable loans. Currently, however, many small hospitals operate as part of a larger health system that exceeds the 500-employee limit under SBA’s affiliation rules. The bill would remove this restriction and grant rural hospitals access to the PPP program, allowing them to retain critical staff and provide quality care to patients for the duration of the pandemic. Please continue to contact your Members of Congress on behalf of this important legislation!

Rural Health advocates are helping to advance legislation that would allow struggling rural PPS hospitals to qualify to convert to critical-access hospitals, which would be a lifeline for certain hospitals amid the COVID-19 pandemic. In return, hospitals would limit their beds, services, and length of patient stays. This would allow a limited number of hospitals to get critical-access designation, even if they are less than 35 miles from another hospital. McConnell spoke on the proposal Wednesday, saying he is ‘attuned’ to it but did not explicitly commit to the proposal. McConnell referenced the aid rural hospitals received in the first coronavirus relief package, saying rural health is certainly a focus and will continue to be in the next relief bill. We expect the first draft of the next COVID-19 relief package to come next week.

The Centers for Medicare & Medicaid Services today released its first monthly update of data that provides a snapshot of the impact of COVID-19 on the Medicare population. For the first time, the snapshot includes data for American Indian/Alaskan Native Medicare beneficiaries.

The new data indicate that American Indian/Alaskan Native beneficiaries have the second highest rate of hospitalization for COVID-19 among racial/ethnic groups after Blacks. Previously, the number of hospitalizations of American Indian/Alaskan Native beneficiaries was too low to be reported.

The updated data confirm that the COVID-19 public health emergency is disproportionately affecting vulnerable populations, particularly racial and ethnic minorities. This is due, in part, to the higher rates of chronic health conditions in these populations and issues related to the social determinants of health.

In response to the first Medicare data snapshot and related call to action from CMS Administrator Seema Verma on June 22, the CMS Office of Minority Health hosted three listening sessions with stakeholders who serve and represent racial and ethnic minority Medicare beneficiaries. These sessions provided helpful insight into ways in which CMS can address social risks and other barriers to health care that will help in our efforts to reduce health disparities.

The updated data on COVID-19 cases and hospitalizations of Medicare beneficiaries covers the period from January 1 to June 20, 2020. It is based on Medicare claims and encounter data CMS received by July 17, 2020.

Other key data points:

• Black beneficiaries continue to be hospitalized at higher rates than other racial and ethnic groups, with 670 hospitalizations per 100,000 beneficiaries.
• Beneficiaries eligible for both Medicare and Medicaid – who often suffer from multiple chronic conditions and have low incomes – were hospitalized at a rate more than 4.5 times higher than beneficiaries with Medicare only (719 versus 153 per 100,000).
• Beneficiaries with end-stage renal disease (ESRD) continue to be hospitalized at higher rates than other segments of the Medicare population, with 1,911 hospitalizations per 100,000 beneficiaries, compared with 241 per 100,000 for aged and 226 per 100,000 for disabled.
• CMS paid $2.8 billion in Medicare fee-for-service claims for COVID-related hospitalizations, or an average of $25,255 per beneficiary.

For more information on the Medicare COVID-19 data, visit: https://www.cms.gov/research-statistics-data-systems/preliminary-medicare-covid-19-data-snapshot

For an FAQ on this data release, visit: https://www.cms.gov/files/document/medicare-covid-19-data-snapshot-faqs.pdf