Maryland has spent $2.4 billion in American Rescue Plan funds on health, SDOH services
Maryland has spent $2.4 billion (67%) of $3.7 billion the state was allocated through the American Rescue Plan from March 3rd, 2021 through June 30th, 2022. Gov. Larry Hogan announced on Aug. 1st that the state submitted its 2022 American Rescue Plan, State and Local Fiscal Recovery Funds (SLFRF) Annual Performance Report to the U.S. Department of the Treasury.
The report breaks down how SLFRF supported health and economic recovery programs and the state’s planned allocations for fiscal year 2023.
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Over half of Maryland’s SLFRF (approximately $1.9 billion) was allocated to address negative economic impacts caused by the COVID pandemic. Another $221 million (6%) of funds were allocated for public health services.
These funds from the federal government worked alongside Maryland’s state-level COVID response. After ARP became law on March 11th, 2021, Hogan and the General Assembly reached a bipartisan spending plan for the funds by March 31st, 2021. In February 2021, Hogan signed the RELIEF Act of 2021, which implemented several ‘Recovery Now’ projects supplemented by SLFRF.
Notable SLFRF projects include a budgeted $31 million for provider assistance. Of that $31 million, $26 million funded a 2% nursing home temporary rate increase from July 1st, 2021 to June 30th, 2022. The other $5 million was appropriated for provider grants for the Developmental Disabilities Administration (DDA) within the Department of Health. To date, $4.7 million has been allocated to DDA providers.
Maryland has spent $159 million in SLFRF for community and public benefits. About $140 million of these funds supported the Temporary Cash Assistance (TCA) program, which provides financial assistance to dependent family members affected by unemployment, death, or other circumstances. TCA’s enrollment increased 49% from March 2020 to February 2021 (about 7,000 individuals).
The state also allocated $325 million in public sector assistance, including $75 million to cover COVID-related employee health insurance claims. Such claims included inpatient and outpatient hospital services, testing kits, vaccines, and antiviral medications. State employees are offered 5 insurance plans through CareFirst BlueCross BlueShield, Kaiser Permanente, and United HealthCare. According to the report, health care providers submitted claims for nearly 200,000 participants who have had at least one COVID-related service between March 3rd, 2021 and May 31st, 2022.