COVID-19 News Alert: HHS Provider Relief Fund Phase 2 General Distribution Now Accepting Additional Applicants

 

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On July 31, 2020, HHS announced that certain Medicare providers would be given another opportunity to receive additional Provider Relief Fund payments. These are providers who previously missed the June 3, 2020 deadline to apply for additional funding equal to 2 percent of their total patient care revenue from the $20 billion portion of the $50 billion Phase 1 General Distribution, including many Medicaid, Children's Health Insurance Program (CHIP), and dental providers with low Medicare revenues. In addition, certain providers who experienced a change in ownership, making them previously ineligible for Phase 1 funding, will also be given an opportunity to apply for financial relief.

Starting August 10th, these eligible providers may now submit their application  for possible funds by August 28, 2020. This deadline aligns with the extended deadline for other eligible Phase 2 providers, such as Medicaid, Medicaid managed care, CHIP, and dental providers.

Latest Eligible Providers for Phase 2 General Distribution Funding

  • Providers who were ineligible for the Phase 1 General Distribution because:
  • They underwent a change in ownership in calendar year 2019 or 2020 under Medicare Part A; and
  • Did not have Medicare Fee-For-Service revenue in 2019.
  • Providers who received a payment under Phase 1 General Distribution but:
  • Missed the June 3 deadline to submit revenue information – including many Medicaid, CHIP, and dental providers with low Medicare revenues that assumed they were ineligible for additional distribution targeted at Medicare providers or had planned to apply for a Medicaid and CHIP specific distribution; or
  • Did not receive Phase 1 General Distribution payments totaling approximately 2 percent of their annual patient revenue.
  • Providers who previously received Phase 1 General Distribution payment(s), but rejected and returned the funds and are now interested in reapplying.

Again, all eligible providers will only receive funding of up to 2 percent of their reported total revenue from patient care. Therefore, for providers who have already received a Phase 1 General Distribution payment from HHS, the previous amount received and kept will be taken into account when determining the eligible amount for Phase 2 General Distribution payment. All payment recipients must accept HHS's terms and conditions and may be subject to auditing to ensure the data provided to HHS for payment calculation are accurate.

HHS has been hosting a series of informational webinars to address questions and support providers through the application process. The next provider and provider organization webinar will be held on Thursday, August 13, 2020.

For the latest information on the Provider Relief Fund Program, visit: hhs.gov/providerrelief.

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