Almost 30 organizations are supporting legislation that would ensure Provider Relief Fund assistance is not taxable. The coalition sent a letter to Representatives Cindy Axne, D-Iowa, Neal Dunn, R-Fla. and Brian Fitzpatrick, R-Penn., to thank the lawmakers for introducing HR 2079, the Eliminating the Provider Relief Fund Tax Penalties Act. Below is text from the letter:
“The 27 undersigned organizations write to express our support and appreciation for your leadership on the introduction of the Eliminating the Provider Relief Fund Tax Penalties Act (H.R. 2079). As you know, healthcare professionals have faced significant challenges during the COVID-19 public health emergency (PHE), caring for patients under new, emergency circumstances. Financial instability and uncertainty has become commonplace for many Americans, including our members and their employees.
Congress’ allocation of $175 billion in financial relief to healthcare professionals through the Public Health and Social Services Emergency Fund (PHSSEF) has been very necessary and greatly appreciated. As healthcare practices were asked to abstain from practice to preserve life-saving personal protective equipment, patient volumes and related revenues saw dramatic reductions. Without this vital funding, immense financial pressures for healthcare professionals would have resulted in practice closures and a loss of access to care for our nation’s patients. Currently, PHSSEF assistance is taxable, resulting in a 21% or more reduction to the benefit for taxpaying providers as compared to non-taxpaying providers.
This negative impact penalizes those who care for our nation’s most vulnerable. The passage of H.R. 2079 would remove the negative tax implications for PHSSEF recipients by ensuring that all Provider Relief Fund assistance is not taxable, while maintaining that expenses tied to this assistance are tax-deductible. This programmatic change is essential to continuing to support our members and their employees during this unprecedented national health crisis.
As healthcare professionals continue to face new challenges every day, H.R. 2079 would deliver crucial relief and help ease the burden on our nation’s healthcare system. Offering all healthcare professionals regardless of tax status the ability to fully utilize the PHSSEF assistance is a laudable goal and is one that we collectively support. We look forward to working together to continue to advance this critical bill.”