Skip to main content
Sister Publication Links
  • ESG: THE IMPLEMENTATION IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Digital Health
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Unwell in America
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Safety Net Hospitals
May 05, 2022 03:53 PM

COVID coverage for all dries up even as hospital costs rise

Associated Press
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    COVID money costs
    MH Illustration/Getty Images

    For the first time, the U.S. came close to providing healthcare for all during the coronavirus pandemic — but for just one condition, COVID-19.

    Now, things are reverting to the way they were as federal money for COVID care of the uninsured dries up, creating a potential barrier to timely access.

    But the virus is not contained, even if it's better controlled. And safety-net hospitals and clinics are seeing sharply higher costs for salaries and other basic operating expenses. They fear they won't be prepared if there's another surge and no backstop.

    "We haven't turned anybody away yet," said Dr. Mark Loafman, chair of family and community medicine at Cook County Health in Chicago. "But I think it's just a matter of time ... People don't get cancer treatment or blood pressure treatment every day in America because they can't afford it."

    A $20 billion government COVID program covered testing, treatment and vaccine costs for uninsured people. But that's been shut down. Special Medicaid COVID coverage for the uninsured in more than a dozen states also likely faces its last months.

    At Parkland Health, the frontline hospital system for Dallas, Dr. Fred Cerise questions the logic of dialing back federal dollars at a time when health officials have rolled out a new "test-to-treat" strategy. People with COVID-19 can now get antiviral pills to take at home, hopefully avoiding hospitalization. Vice President Kamala Harris, who recently tested positive but is back working at the White House, is an example.

    "Test-to-treat will be very difficult for uninsured individuals," predicted Cerise, president and CEO of the system. "If it's a change in strategy on the large scale, and it's coming without funding, people are going to be reluctant to adopt that."

    Officials at the federal Department of Health and Human Services say the new antiviral drugs like Paxlovid have been paid for by taxpayers, and are supposed to be free of charge to patients, even uninsured ones.

    But they acknowledge that some uninsured people can't afford the medical consultation needed to get a prescription. "We hear from state and local partners that the lack of funding for the Uninsured Program is creating challenges for individuals to access medications," said Dr. Meg Sullivan, chief medical officer for the HHS preparedness and response division.

    The nation has not pinched pennies on the pandemic before.

    Not a Modern Healthcare subscriber? Sign up today.

    "We're well short of universal health coverage in the U.S., but for a time, we had universal coverage for COVID," said Larry Levitt, a health policy expert with the nonpartisan Kaiser Family Foundation. "It was extraordinary."

    Recently an urgent White House request for $22.5 billion for COVID priorities failed to advance in Congress. Even a pared-back version is stuck. Part of the Biden administration's request involves $1.5 billion to replenish the Uninsured Program, which paid for testing, treatment and vaccine-related bills for uninsured patients. The program has now stopped accepting claims due to lack of money.

    That program, along with a less known Medicaid option for states, allowed thousands of uninsured people to get care without worrying about costs. Bipartisan support has given way as congressional Republicans raise questions about pandemic spending.

    The Uninsured Program was run by the Health Resources and Services Administration, an HHS agency. Medical providers seeing uninsured people could submit their bills for reimbursement. Over the last two years, more than 50,000 hospitals, clinics, and medical practices received payments. Officials say they can turn the program back on if Congress releases more money.

    The Medicaid coverage option began under the Trump administration as a way to help states pay for testing uninsured people. President Joe Biden's coronavirus relief bill expanded it to treatment and vaccine costs as well. It's like a limited insurance policy for COVID. The coverage can't be used for other services, like a knee replacement. The federal government pays 100% of the cost.

    Fifteen states, from deep blue California to bright red South Carolina, have taken advantage of the option, along with three U.S. territories. It will end once the federal coronavirus public health emergency is over, currently forecast for later this year.

    New Hampshire Medicaid Director Henry Lipman said the coverage option allowed his state to sign up about 9,500 people for COVID care that includes the new antiviral drugs that can be taken at home.

    "It's really the safety net for people who don't have any access to insurance," said Lipman. "It's a limited situation, but in the pandemic it's a good back-up to have. It makes a lot of sense with such a communicable disease."

    With COVID cases now at relatively low levels, demand for testing, treatment and vaccination is down. But the urgency felt by hospitals and other medical service providers is driven by their own bottom lines.

    In Missouri, Golden Valley Memorial Healthcare CEO Craig Thompson is worried to see federal funding evaporate just as operating costs are soaring. Staff have gotten raises, drug costs have risen by 20% and supply costs by 12%.

    "We've now exited this pandemic ... into probably the highest inflationary environment that I've seen in my career," Thompson said. The health system serves a largely rural area between Kansas City and Springfield.

    In Kentucky, Family Health Centers of Louisville closed a testing service for uninsured people once federal funds dried up. The private company they were working with planned to charge $65 a test.

    Things are manageable now because there's little demand, said spokeswoman Melissa Mather, "but if we get hit with another omicron, it's going to be very difficult."

    Floridian Debra McCoskey-Reisert is uninsured and lost her older brother to COVID-19 in the first wave two years ago. In one of their last conversations, he made her promise she wouldn't catch the virus.

    McCoskey-Reisert, who lives north of Tampa, has managed to avoid getting sick so far. But she's overshadowed by fear of what could happen if she or her husband get infected.

    "If either one of us get sick with COVID, we don't have a way to pay for it," she said. "It would likely bankrupt us if we can't find some other help."

    Retrenchment on the uninsured mirrors some of the bigger problems of the U.S. healthcare system, said Chicago hospital physician Loafman.

    "Quite frankly, we as a society take care of the uninsured for COVID because it's affecting us," he said. "You know, a gated community doesn't keep a virus out ... that's sort of the ugly truth of this, is that our altruism around this was really self-motivated."

    Related Articles
    Experts say U.S. suspension of COVID aid will prolong pandemic
    COVID budget impasse halts aid to test and treat uninsured
    Delayed care drives increase in hospital expenses
    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    cvs.jpg
    New York accuses CVS of diverting millions from safety-net hospitals
    prescription-cost_i.png
    Hospitals see growing financial impact from 340B discount restrictions
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Modern Healthcare A.M. Newsletter: Sign up to receive a comprehensive weekday morning newsletter designed for busy healthcare executives who need the latest and most important healthcare news and analysis.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Digital Health
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Unwell in America
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing