Microsoft Word - CARES Act implications on Hope (2).docx

CARES Act implications on Hope 

Hope Team members  Recovery Rebates for Individuals provides U.S. residents with adjusted gross income up to $75,000  (individuals) and $150,000 (for joint filers) are eligible for a full $1,200 rebate ($2,400 for joint filers).  And an additional $500 per child. Reduces rebates by $5 for each $100 that a taxpayer’s income exceeds  a phase‐out threshold. The rebate is completely phased out for individuals with adjusted gross income  of $99,000 ($198,000 for joint filers) with no children. Amounts are based on taxpayers’ 2018 tax return  if 2019 tax return has not yet been filed.  Special Rules for Use of Retirement Funds waives the 10% early distribution penalty for coronavirus‐ related distributions up to an aggregate $100,000 from all eligible retirement plans in the plan sponsor’s  control group. Distribution amounts may be included in individual’s taxable income ratably over three  years, subject to taxpayer election. The taxpayer may recontribute the funds to an eligible retirement  plan in one or more payments within three years of distribution date and without regard to that year’s  cap on contributions.  Applies to coronavirus‐related distributions from Jan. 1 through Dec. 31, 2020. 

Temporary Relief for Federal Student Loan Borrowers requires the secretary to defer student loan  payments, principal, and interest for six months, through Sept. 30,2020, without penalty to the  borrower for al l federally owned loans, providing relief for over 95% of student loan borrowers. 

Hope programs and services  Hospice 

Use of Telehealth to Conduct Face‐to‐Face Encounter Prior to Recertification of Eligibility for Hospice  Care During Emergency Period allows, during the COVID‐19 emergency period, hospice physicians and  nurse practitioners to use telehealth technologies in order to fulfill the requirement for face‐to‐face  recertification in hospice settings.  Connections  Waives nutrition requirements for Older Americans Act (OAA) meal programs during the COVID‐19  public health emergency. Opens eligibility to individuals who are practicing social distancing due to the  emergency and are otherwise eligible.  Mission Support  Modification of Limitations on Charitable Contributions During 2020. Increases the limitations on  deductions for charitable contributions. The 50% of a0djusted gross income limitation is suspended for  individuals.  The 10% limitation is increased to 25% of taxable income for corporations. Increases the  limitation on deductions for contributions of food inventory from 15% to 25%.

Administration  Delay of Payment of Employer Payroll Taxes. Employers and self‐employed individuals may delay  payment of 100% of the employer share of social security taxes due after the date of enactment through  the end of 2020. The deferred amounts are paid in two installments: 50% on Dec. 31, 2021, and 50% on  Dec. 31, 2022.  Temporarily lift the Medicare sequester, which reduces payments to providers by 2 percent, from May 1  through December 31, 2020. This action will effectively increase Medicare hospice per diem payments  by 2 percent from May 1 through December 31, 2020.  A $100 billion fund for health care providers to cover their expenses related to responding to the COVID‐ 19 crisis in addition to normal Medicare/Medicaid reimbursement. This funding is specifically intended  to include increased funding for personal protective equipment (PPE).   The CARES Act includes several provisions regarding federal reimbursement for COVID‐related employee  leave that should be helpful to hospices as employers of front‐line health care workers.  General Provisions impacting the Country  Funds support the development of necessary medical countermeasures and vaccines, advance domestic  manufacturing for medical products, and monitor medical product supply chains.  Strategic National Stockpile: to procure personal protective equipment, ventilators, and other medical  supplies for federal and state response efforts.  Advance construction, manufacturing, and purchase of vaccines and therapeutic delivery to the  American people.  Resources are provided for public health preparedness and response, which includes funding to state  and local public health responders, as well as enhanced nationwide surveillance, diagnostics, laboratory  support, communication campaigns to the public, guidance to physicians and health care workers, and  global health preparedness. Funds state and local preparedness and response activities. 

MH 3/30/20

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