President Joseph R. Biden signed the bill into law Thursday afternoon.
The American Rescue Plan Act that President Joseph R. Biden signed into law on Thursday is a "positive" for healthcare providers and insurers, Moody's Investors Service said.
"The $1.9 trillion coronavirus relief bill will boost the ongoing progress in delivering mass vaccinations, which will likely contribute to a continued decline in COVID-19 infection rates and facilitate a more rapid reduction in curbs on social interactions across the US," Moody's says.
"The bill includes provisions that will be positive for health insurers and healthcare providers should they lead to expanded enrollment in private health insurance plans and reductions in uncompensated care," Moody's says.
The 591-page Rescue Act passed the House on Wednesday on a 220-211 party-line vote. No Republicans in the House or Senate voted for it.
The Act provides billions of dollars for state and local governments, Medicaid, providers, health insurers, and individuals, including stimulus checks of up to $1,400 for most Americans, extended unemployment benefits, increased subsidies for health insurance bought on the federal Marketplace, $8.5 billion in additional funding for rural healthcare, and an increased federal match for home- and community-based services.
"The measures, which aim to make healthcare coverage more affordable for lower and middle-income households, include temporary increases in subsidies to purchase health insurance on the individual marketplaces created by the Affordable Care Act," Moody's says.
The bill also subsidizes COBRA premiums for up to six months to help laid-off workers keep their employer-sponsored health insurance. However, it does not cover copays or deductibles.
Moody's says the financial assistance for households in the form of $1,400 direct payments for most American, and the extension of $300 weekly unemployment compensation – all of which represent the bulk of the Act's spending – should reignite the sputtering economy.
"The financial assistance to individuals will also support a rebound in demand for services, underpinning Moody's Investors Service's forecasts of 4.7% real GDP growth in the US this year and 5% next year," Moody's says.
"Additionally, the potential for a broad resumption of activity this spring – which would be earlier than our current expectations – would be an upside to our 2021 growth forecasts," Moody's says.
The $1.9 trillion Rescue Act is the equivalent of about 8.5% of Moody's U.S. GDP forecast for 2021.
“The bill includes provisions that will be positive for health insurers and healthcare providers should they lead to expanded enrollment in private health insurance plans and reductions in uncompensated care.”
Moody's Investors Service
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
Photo credit: Portland, OR, USA - Mar 8, 2021: A woman browses the National Conference of State Legislatures (NCSL) website to learn more about the COVID-19 Economic Relief Bill by the Biden Administration. Tada Images / Shutterstock
KEY TAKEAWAYS
The Act provides billions of dollars for state and local governments, Medicaid expansion, providers, health insurers, earmarks $8.5 billion for rural healthcare, and increases the federal match for home- and community-based services.
It also provides funding for vaccine production and distribution, PPE and other medical supplies, direct stimulus checks of up to $1,400 for most Americans, extends unemployment benefits, subsidizes COBRA premiums, and increases subsidies for health insurance bought on the federal Marketplace,
The 591-page Rescue Act passed the House on Wednesday on a 220-211 party-line vote. No Republicans in the House or Senate voted for it.