As part of its
ongoing efforts to provide financial relief to healthcare providers
impacted by the coronavirus disease 2019 (COVID-19), today the Department
of Health and Human Services (HHS) is announcing an application deadline
extension for the Phase 2 general distribution to Medicaid, Medicaid
managed care, Children's Health Insurance Program (CHIP) and dental
providers. HHS also plans to allow certain Medicare providers who
experienced challenges in the Phase 1 Medicare General Distribution
application period a second opportunity to receive funding. Both groups
will have until Friday, August 28, 2020 to apply.
"From the start,
HHS's administration of the Provider Relief Fund has been focused on
distributing funding in a way that is fast, fair and transparent,"
said HHS Secretary Alex Azar. "Extending the deadline for Medicaid
providers and giving certain Medicare providers another shot at funding is
another example of our work with providers to ensure as many as possible
receive the support they need."
Medicaid, CHIP, & Dental (Phase 2 General
Distribution) Deadline Extension
In June, HHS
announced the opening of Phase 2 of the General Distribution – a $15
billion allocation – wherein eligible Medicaid, Medicaid managed care, CHIP
and dental providers could begin applying for funding of up to 2 percent of
reported revenue from patient care. The goal for this opportunity was to
reach the remaining providers participating in state Medicaid and CHIP
programs that did not receive funding in the Phase 1, Medicare General
Distribution, as well as certain dental providers. Since the announcement,
HHS has posted
resources and hosted a number of webinars targeted at providers
and provider organizations to answer questions and assist eligible
providers with the application process. The initial deadline of July 20,
2020, was extended to August 3, 2020, based on provider feedback that they
learned about the program too close to the deadline and needed more time to
complete their application. HHS continues to keep an open line of
communication with provider organizations, congressional, state and local
leaders, in a collective effort to get the word out about this program, and
HHS has learned that a second extension would be beneficial to those
providers. By giving providers until August 28, 2020 to apply, HHS is
hopeful it has struck the right balance in terms of providing as much
flexibility as possible, recognizing the constraints on smaller practices
already operating on thin margins with limited administrative staff. HHS
will also soon be providing a more simplified application form in response
to ongoing dialogue focused on improving the provider experience.
Second Chance for Certain Medicare Providers
Starting the week of
August 10, HHS will allow Medicare providers who missed the opportunity to
apply for additional funding from the $20 billion portion of the $50
billion Phase 1 Medicare General Distribution. In April, to expedite
providers getting money as quickly as possible, as they faced the financial
hardships stemming from suspended elective procedures and other COVID-19
related impacts, HHS, utilizing the Centers for Medicare and Medicare
Services (CMS) payment information, distributed $30 billion directly to
Medicare providers proportionate to their share of 2019 Medicare
fee-for-service reimbursements. This was part one of the $50 billion Phase
1 Medicare General Distribution which sought to offer providers financial
relief equal to 2 percent of their annual revenues. Providers that do not
submit comprehensive cost reports with CMS were asked to submit revenue
information to a portal to receive the balance of their 2 percent payment
of General Distribution funds. Some providers, including many Medicaid,
CHIP, and dental providers with low Medicare revenues, did not complete an
application by the deadline for this additional $20 billion round of
funding. HHS, in its principle of ensuring fairness in the administration
of the Provider Relief Fund program, is now giving those eligible providers
another opportunity to apply for additional funding. They will have until
August 28, 2020, to complete an application to be considered for the
balance of their additional funding up to 2 percent of their annual patient
revenues.
Payments for Providers Who Had a Change in
Ownership
As previously noted,
HHS relied on 2019 CMS payment data on file to determine automatic payments
for $30 billion of the $50 billion Phase 1 Medicare General Distribution.
Accordingly, some providers or provider practices that experienced a change
in ownership in 2020 missed out on payments as the payments were
distributed to the previous owners. Prior owners are required to return the
payments to HHS, if they cannot attest to providing diagnoses, testing, or
care for individuals with possible or actual cases of COVID-19 on or after
January 31, 2020. For program integrity considerations, previous owners are
precluded from transferring funds to new owners who may qualify and can
attest to providing care for possible or actual COVID 19 cases. HHS did not
reissue returned payments to the new owners and instead promised to give
new owners a separate opportunity to apply for provider relief funding.
That opportunity is now here. Starting the week of August 10, providers who
experienced change in ownership challenges may submit their revenue
information, along with documentation proving a change in ownership, by
August 28 for consideration for Provider Relief Fund payment.
HHS is currently
working to address relief payments to new providers in 2020 along with
those that have yet to receive any funding for a variety of reasons,
including the fact that they may only bill commercially, or do not directly
bill for the services they provide under the Medicare and Medicaid programs
and thus did not receive any funding yet. Future announcements will be
provided.
For updated
information and data on the Provider Relief Fund, visit: hhs.gov/providerrelief.
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