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              Congressional
              Research Servik






COVID-19 and the Uninsured: Federal

Funding Options to Pay Providers for Testing

and Treatment



Updated November 3, 2020
Congress enacted provisions to increase access to Coronavirus Disease 2019 (COVID-19) testing and
treatment (including, for some programs, an eventual vaccine) under the Families First Coronavirus
Response Act (FFCRA; P.L. 116-127), as amended by the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act; P.L. 116-136). Separately, Congress provided funding to support testing
infrastructure in the Paycheck Protection Program and Health Care Enhancement Act (PPPHCEA; P.L.
116-139). In addition, these laws appropriated funding to government agencies that provide health
services (e.g., the Department of Veterans Affairs) and for specific health providers (e.g., health centers).
These laws largely focus on COVID-related modifications for individuals who have public or private
health care coverage; however, this Insight discusses federal funding options under these laws that can be
used to pay providers for COVID-19-related testing and treatment for uninsured individuals through
funding distributed under an administrative construct referred to as the Uninsured Fund (UF) and a newly
created Medicaid option for testing.

Testing

Congress provided additional funding for health centers, which are obligated to provide care to all
individuals regardless of their ability to pay, to expand access to testing for uninsured individuals. It also
appropriated $1 billion in both FFCRA and PPHCEA to reimburse providers for diagnostic and antibody
testing and for associated costs (e.g., specimen collection), which is being administered as the UF. Under
the UF, providers must seek reimbursement for testing uninsured individuals, where uninsued is defined
in FFRCA as individuals who are not c overed by a federal health program or are not enrolled in spec ified
types of private health insurance coverage. Except in a few instances (e.g., testing sites supported by the
Federal Emergency Management Agency) providers are not obligated to seek reimbursement from the
UF). However, those that do must comply with certain terms and conditions that include accepting the
fund's reimbursement, at the Medicare rate, as full payment. These requirements may mean that some
providers will instead choose to pursue payment from individuals, which may be higher than the
Medicare rate.

                                                              Congressional Research Service
                                                              https://crsreports.congress.gov
                                                                                  IN11526

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