What does the CARES act mean for hospitals and healthcare? The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by the American government on 27 March 2020. At an unprecedented time when the whole world has sunk into the worst economic depression of the century, the Care Act for hospitals provided a relief package of $2 trillion to revive the economy of the USA. The CARES act provider relief fund has enabled this action to take place.
The US govt. Found it very challenging to address increasing unemployment applications. 3.28 million unemployment applications have been received, demanding unemployment benefits. Consumption, the largest driver of the US economy, is dying a slow death due to COVID-19. The consumption of commercial products has dramatically fallen amidst the coronavirus crisis. Global supply chains have been disturbed. Small business houses are in an ultra-danger state. The gold and crude oil economy have also collapsed due to the pandemic. Russia has begun a war over oil prices with Saudi Arabia. The oil prices have dramatically fallen due to the absence of traveling, which has resulted in a sudden crash of the oil economy. Hot debates have erupted in the Organization of Petroleum Exporting Countries (OPEC), which led to the resignation of Russia from the OPEC Agreement 2016.
Commercial aerospace, travel, and insurance are the hard-hit industries, and Rural areas are the hard-hit areas. The Economic disability caused by World War II appears minimal in front of the financial damage caused by the coronavirus. The global shutdown led to the cancellation of Events (sports, cultural, and academic). Social distancing campaigning has deprived millions of their jobs. 99.9% of global education is halted. The business of airlines has stopped completely. Restaurants are lying vacant. The great lockdown of 2020 has given a fatal blow to the world economy. International Monetary Fund (IMF) declared on 14 April 2020 that all its G7 countries have entered the phase of depression. The CARES act for mental health has provided sufficient relief as well.
A voluminous text describes the CARES Act 2020. Economic impact payments, also known as stimulus payments, will be made to Americans. All US residents will qualify for the relief finance, but those having a large income will not qualify to receive it. Small Firms are being provided with $367 billion to reestablish themselves. Lower and middle-income groups, Americans, will receive a cash handout. Public services will receive 180Bn $ to function efficiently. Out of $ 180 billion, a bulk of $130 billion will deviate towards Hospitals.
A four-membered family will receive a cumulative income of $ 3,400. $145 million is provided for 5 years for telehealth. Those senior citizens who are unable to procure food due to their advanced age are provided with free food. For up to 2 years, employers are relaxed to pay Social Security Tax. $ 500 is provided to each dependent, who is under the age of 17. US Mail will receive $ 10 billion. $14 billion credit is dedicated to Higher Education; colleges and universities will be utilized to provide a grant to the students for housing, books, and food. Relaxation is given on the return of an educational loan. Airlines are granted $ 25 billion as relief-cash. $ 8 billion is reserved for tribal governments. The introduced health insurance will cover the cost of tests, vaccines too.
The Treasury Department of the US is working to deliver fast relief to American households in this hour of crisis. A web-based portal is being launched to record the banking data of Americans. Along with the Treasury Department, Internal Revenue Service (IRS) is continuously working to ensure the honest distribution of the economic package. The ceiling to qualify for the fund is put on $ 99,000 for a single person. The relief package represents only 10% of the Gross Domestic Product (GDP) of America. The Bill was introduced during the Transmission Phase 3 of Novel Coronavirus, the Community Transmission stage. The source person responsible for transmission is unknown because the virus has penetrated deep into society. A healthy person catches it from the Environment. President Donald Trump, Senior Government Officials, and their immediate family members are ineligible for the fund. The loans come with the strict condition of no outsourcing jobs for the midsize Business Groups having less than 1,000 employers.
A Special Inspector General for Pandemic Recovery (SIGPR) will monitor the division of funds to the respective departments. White House lawyer Brian Miller has been appointed for this demanding job. A few Republican leaders, including Lindsey Graham and Tim Scott, criticized the Act by advancing the point that it will induce lethargy instead of a willingness to work among Americans. Various changes have been made to the existing laws to suit the implementation of the scheme. States will be given funding based on their population. This answers the question, ‘what does the CARES act mean for hospitals and healthcare?’
World Economic Forum opines that it will take at least three years for the American Economy to recover from the Corona Crisis. McKinsey says that the economic response to the crisis will determine the speed of recovery. The historic decision has been taken to maintain liquidity in the market.