HHS Offers Medicare Providers Second Chance at Second Tranche Funding ($20 Billion Allocation)

As previously reported, the Department of Health & Human Services (HHS) issued Provider Relief Funds in multiple tranches.  One of the largest tranches—$20 billion of the initial $50 billion general distribution—will be reopened for Medicare providers that did not complete the necessary application for the funding.  In providing this second opportunity, HHS explained:

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.

The application portal is accessible here.  Before submitting the application, make sure you have reviewed and understand the terms and conditions associated with the disbursement, which are located here. The deadline for submission is August 28, 2020.

For more information, please contact Hedy S. Rubinger or Alexander Foster.