Paycheck Protection Program Extended
Congress has voted to extend the application deadline to the Paycheck Protection Program (PPP) from March 31st to May 31st, 2021, giving small businesses further opportunity to receive first or second draw loans. The bill is expected to be signed by the President soon.
The PPP was reopened in January under modified terms, with an additional $7.25 billion recently allocated to the program with the passage of the American Rescue Plan earlier this month.
The Small Business Administration will continue to process PPP loan applications until June 30th, 2021, one month after the newly extended deadline.
For more details on the reopened Paycheck Protection Program, CLICK HERE.
Congress Considers Legislation Mitigating Future Medicare Cuts
Two different proposals protecting healthcare providers from additional Medicare cuts in 2021/2022 are moving through the House and Senate.
Legislation already passed by the House would protect providers from additional Medicare cuts in 2021. The first major provision in the bill extends the moratorium on the -2% Medicare sequester cut beyond the March 31, 2021, deadline to December 31st, 2021. The suspension on the -2% sequester cut has been in place since the passage of the CARES act in 2020. Secondly, the bill protects physician practices by avoiding an additional statutory pay-as-you-go (PAYGO) cut of up to -4% which is set to be triggered by the budgetary impact of the newly signed American Rescue Plan. According to an AHA estimate, those cuts would amount to about $36 billion for 2022.
The Senate passed an alternative bill this week which does not include provisions related to the -4% PAYGO cut but would extend the sequester moratorium to the end of 2021. The House is expected to vote on the Senate bill during the week of April 12th.
As always, ADVOCATE will continue to keep you informed on the issues impacting medical groups as they develop.
Manager, Regulatory Affairs