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Additional Federal Funding for Providers

The Department of Health and Human Services (HHS) announced on June 9, a $25B payment to go to safety net hospitals and other health providers who treat primarily Medicaid patients. An estimated $15B is allocated to Medicaid and CHIP providers who have not received any federal aid, since the pandemic started. The remaining $10B would go to the most vulnerable safety net hospitals which includes hospitals providing a disproportionate amount of charity care and have razor-thin profit margins. Those hospitals will receive at least $5M but not more than $50M. Payments are expected to begin being dispersed within a week.

HHS is also planning for an additional $10B for a future round of payments, which will be aimed at hospitals in COVID-19 hotspots.

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