LETTER — Distribution of CARES Act Funding

The Coronavirus Aid, Relief and Economic Security (CARES) Act included $100 billion for relief to hospitals, healthcare providers and insurers responding to the COVID-19 pandemic. Recognizing the importance of delivering these funds in a fast and transparent manner, on April 10, HHS distributed $30 billion directly to hospitals and providers. Unfortunately, the use of Medicare fee-for-service claims data as the basis for distributing funds unfairly disadvantaged hospitals, providers and health systems that predominantly care for individuals enrolled in Medicare Advantage, commercial health coverage and Medicaid. Moving forward, HHS should adjust the distribution formula to allocate resources to those disadvantaged in the first tranche of funding.

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