Are Providers Compensated More for COVID Patients? The Facts

There's a ton of speculation, especially on social media, that the more COVID cases 'diagnosed' by a state, they get more money, or for hospitals.

There is some truth to that, but here's now it actually works.

The CARES ACT, passed back in April, allocated enough money for a 20% increase in reimbursements from Medicare to hospitals for COVID-19 patients. The reason for the increase was to help with what was then expected to be a significant influx of Medicare patients to treatment centers.

Although there have been a high number of elderly persons (the prime target demo for the virus) who have been hit hard, the OVERALL impact on the Medicare system has not been as hard or impactful as expected.

The majority of Medicare patients are 65 or older, although there are persons in their 50's and even 40's who have it or some variation of the coverage.

Between $30 and $50 billion of the $100 billion CARES Act has been or is being used to compensate hospitals who treat CONFIRMED COVID cases.

Many people wonder why medical personnel are being furloughed, and why some medical practices and even hospitals are said to be struggling financially despite this infusion of money. It's because the overall number of COVID cases in general is not as high as was projected by the error-filled models early on.

Also, with many states (at least in the beginning) suspending non-life saving medical treatments, many of the bread and butter procedures have dried up.  Especially in states like OR, WA and CA where the lockdowns have been much more severe, many medical practices and hospitals are losing money.

So, yes, hospitals-doctors etc etc get more for COVID patients, BUT it has to be Medicare related. Now you know.

To read more about this, click on the button below.