The purpose of the CARES Act, enacted in response to the COVID-19 pandemic, was to provide immediate economic relief and support to various sectors of the United States. It allocated funding to hospitals, with $175 billion designated for healthcare-related expenses or lost revenues. An analysis of 952 hospital-level entities revealed that hospitals received an average payment of $33.6 million from the CARES Act, with academic-affiliated hospitals and those with higher pre-COVID-19 assets or higher COVID-19 cases receiving more substantial funding.
An Investopedia article breaks down the impact areas of the CARES Act, “The CARES Act can be broken into seven major areas, including benefits for individuals, unemployment assistance, small business relief, big and medium-sized business relief, tax breaks and credits, hospital and health care assistance, and state and local government.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2.2 trillion stimulus package enacted by the U.S. government on March 27, 2020. This includes direct payments to individuals, expanded unemployment benefits, funding for businesses through loans and grants, emergency healthcare funding, and various tax breaks and incentives.
In simpler terms, the CARES Act was the U.S. government's way of giving a financial lifeline to individuals, businesses, and healthcare providers hit hard by the coronavirus outbreak. By sending out stimulus checks to people, offering extra money to those out of work, helping small businesses keep their doors open, and supporting hospitals, the Act tried to cushion the blow from the economic and health crisis.
This legislation represents the largest emergency aid package in U.S. history, aiming to stabilize the economy during an unprecedented global health emergency. Its impact has been wide-reaching, helping to prevent deeper financial downturns and providing support to those in immediate need. Through these efforts, the CARES Act assists in the ongoing recovery and has set a precedent for future government responses to national crises.
See also: PHI disclosures by business associates after the COVID-19 exemption ends
See also: Telehealth HIPAA compliance after the COVID-19 exemption ends
One of the interactions is the CARES Act’s push to expand telehealth services, which allows for broader access to healthcare while people were under lockdown or avoiding public places. This expansion required healthcare providers to adopt new technologies and platforms for remote care, necessitating a reevaluation of how HIPAA’s privacy and security rules apply to digital health communications and patient data protection. In response, the Department of Health and Human Services (HHS) was tasked with issuing guidance on sharing patients' protected health information (PHI), ensuring that while healthcare providers moved quickly to adapt to telehealth, they remained compliant with HIPAA’s stringent privacy protections.
Moreover, the CARES Act's emphasis on supporting healthcare operations during the pandemic meant more data sharing among healthcare entities, research organizations, and government agencies to track, treat, and eventually curb the spread of COVID-19. This increased flow of health information reinforces HIPAA rules in securing PHI against unauthorized access or breaches.
See also: HIPAA Compliant Email: The Definitive Guide
By allowing healthcare providers to offer telehealth services to Medicare beneficiaries, reducing regulatory barriers, and increasing funding for telehealth infrastructure.
Yes, the CARES Act included provisions specifically targeting mental health support, such as increased funding for mental health services and the expansion of telehealth for mental health care.
The CARES Act impacted students and recent graduates with student loans by pausing federal student loan payments, temporarily setting interest rates to 0%, and halting collections on defaulted loans.