The new $1.9 trillion COVID-19 relief package, known as the American Rescue Plan (H.R. 1319), includes not only payments to citizens and government aid, but also increased contributions to healthcare measures.
The American Rescue Plan provides the Department of Health and Human Services (HHS) with $47.8 billion to support and fund activities that mitigate the spread of COVID-19. It includes a national testing strategy and technical support for state and local public health departments. Additionally, it provides $8.5 billion in relief funding for rural healthcare providers.
The legislation also includes a number of other healthcare-related provisions, such as funding to support COVID-19 vaccination efforts, reforms to reduce the cost of health insurance, and support for mental and behavioral healthcare services.
For vaccination efforts, the bill includes:
$7.5 billion for the Centers for Disease Control and Prevention (CDC) to support activities to prepare, promote, distribute, administer, monitor and track COVID-19 vaccines.
$1 billion to the CDC to strengthen public understanding and confidence in COVID-19 vaccines and improve U.S. vaccination rates.
$6.05 billion for research, development, manufacturing, production and purchase of vaccines, therapeutics, and ancillary medical products and supplies to respond to COVID-19.
$7.6 billion for grants and cooperative agreements to community health centers for COVID-19 vaccine distribution, testing, contract tracing, equipment, staff, infrastructure and community education and outreach.
To increase the number of people with insurance and reduce their costs, the bill includes:
An extension of Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage through the end of the fiscal year, along with healthcare subsidies for unemployed workers who are ineligible for COBRA.
$35 billion in premium subsidy increases for those who buy coverage on the Affordable Care Act (ACA) marketplaces over the next two years.
Premium costs are capped at a maximum of 8.5% of a household’s income on the ACA exchange over the next two years.
Cost-sharing subsidies for certain ACA enrollees who have received unemployment compensation in 2021.
To address mental and behavioral health needs, the bill includes:
$40 million to establish or expand protocols to promote mental health among healthcare providers, particularly in rural and underserved communities.
$50 million to HHS to address increased community behavioral health needs due to the impact of the pandemic.
To expand access to care within the Medicaid program, the bill includes:
An increase in Federal Medical Assistance Percentage funding for states that newly expand Medicaid under the ACA.
Support for mobile crisis intervention services.
Increase of Medicaid drug rebates.
The legislation also excluded several healthcare provisions that could be addressed in future reconciliation bills or major legislative packages, including:
This legislation was subject to the Statutory Pay-As-You-Go Act of 2010, a deficit control measure that if left unaddressed will automatically cut $381 billion in spending in fiscal year 2022. Of that amount, the Medicare program will be subject to $36 billion in cuts. However, legislation is underway to cancel these Medicare spending cuts.