HEROES Act for the Health of America

As we enter July and the economic crisis brought on by the Covid-19 pandemic continues, Senate Majority Leader McConnell is still insisting that the Senate will not take up a COVID-19 relief bill until the chamber returns on July 20. Many states across the country are facing devastating budget deficits because of low sales tax returns among other reduced revenue streams. With most budgets due on or before July 1, they are faced with crippling and unnecessary uncertainty.

Pennsylvania faced a July 1 budgetary deadline, but the General Assembly wisely bought the commonwealth some time by recently passing an interim budget that funds education, debt service, and pension obligations fully for the next year. The bad news is that for every other part of the budget, including Medicaid, the money will run out at the end of November. Lawmakers hope that by then, they will have a clearer picture of what to expect regarding revenue, which is certain to fall short of what is needed. They are also counting on knowing what to expect from the federal government to help fill that gap. It is critical that Congress and the President pass another Covid-19 relief bill to help Pennsylvania’s families and the rest of the country weather this economic crisis.

As you might remember, Congress has twice taken desperately needed action to shore up the national economy in the face of the global pandemic. Early in March, they passed the Families First Act. This act increased the funds that the federal government sends to the states to help with the administration of Medicaid. The Federal Medical Assistance Percentage (FMAP) increased by 6.2%, bringing millions of dollars into Pennsylvania as people lost their employer-sponsored health insurance and Medicaid enrollment soared. Later in March, Congress passed the CARES Act, which provided aid directly to American workers. The act created Pandemic Unemployment Assistance, a new program that provides unemployment benefits to people who do not normally qualify for unemployment income—e.g., self-employed individuals, gig workers, and clergy members.

Now is not the time for Congress to take its foot off the pedal. In fact, the House of Representatives showed that there is more work to be done when, in May, it passed the Health and Economic Recovery Omnibus Emergency Solutions Act, commonly known as the HEROES Act. This relief bill combines some of the most successful parts of the two previous relief efforts. First, the unemployment benefits from the CARES Act would be extended through January 31, 2021. Critically, as in the CARES Act, workers traditionally left out of unemployment insurance would be covered through March of 2021.

Medicaid, which is so important during this health crisis and which is a big part of Pennsylvania’s budget, would get a bump in funding too. Remember the FMAP? The HEROES Act increases the percentage increase from 6.2% to 14%. For Pennsylvania, that would mean around $1.7 billion more dollars to pay hospitals and providers for public health needs, including treating Medicaid patients. (Center on Budget & Policy Priorities, 4/21/20).

But Medicaid funds alone will not be enough. Separate aid to states will also be necessary to help state budgets stressed by these unusual times. The HEROES Act includes $500 billion in direct aid to state governments and $375 billion to help local governments, which have also seen a decrease in revenue.

Last, but by no means least, there is testing. One of the most important ways to get a handle on the spread of Covid-19 and drive down illnesses and fatalities is by testing and tracing so that people who are infected can take the proper precautions to get well and avoid infecting those around them. The HEROES Act provides $75 billion for coronavirus testing and tracing measures nationwide. It also would guarantee that all Americans could receive free Covid-19 treatment. (Grace Segers, politics reporter, CBS News, 5/15/20)

Some would protest that another big relief bill will further increase the enormous federal deficit. “How can we let this happen?” We can and should because our federal government’s number one priority is taking care of its citizens. What is more important than their health?

There has always been a double standard regarding the federal deficit. As columnist Paul Krugman explains, “The problem is the selectivity of deficit hysteria, which somehow kicks in only when a Democrat is president or progressives propose spending that would make American lives better.” (The New York Times, 10/28/19) Krugman concludes, “Selective hysteria has done enormous harm. Those who propagate it, when social changes need to be made, should be called out for their bias.”

The HEROES Act will increase the federal deficit, but now more than ever, working families should have the economic and health security they need. We know that the HEROES Act will not pass the Senate exactly as it was constructed in the House. But we need to call on our Pennsylvania Senators to pass a Covid-19 relief act that will increase FMAP, provide much needed aid to states and local municipalities, and provide funds for testing so that our commonwealth can move ahead to finish its budget. Please contact Senators Pat Toomey (202-224-4254) and Bob Casey (202-224-6324) to urge their support for passing another necessary Covid-19 relief bill in the U.S. Senate this month.

Sandy Busche is a member of Gettysburg DFA’s Healthcare Task Force.