As part of the Coronavirus Aid, Relief, and Economic Security (CARES Act) passed into law on March 27, 2020, a $30 Billion Provider Relief Fund was established. The goal of this fund was to provide an immediate infusion of funds into the health care system.
These funds represent a payment to the facility and will not need to be repaid.
All facilities and providers who received Medicare Fee for Service funds in 2019 are eligible. Payments will be made based on the Taxpayer Identification Number (TIN) of the provider and will be sent to the payment information on file for your regular Medicare Payments.
As a condition of receiving these funds, providers agree not to see out of pocket payments from COVID-19 patients. In addition, providers will be asked to attest to their acceptance of the terms and conditions of this program.
to review the Terms and Conditions. Failure to attest to these terms and conditions within 30 days of payment will result in these funds being repaid.
How will the payments be calculated?
CMS will calculate the proportion of a facility’s 2019 reimbursement to the total Medicare Fee for Service (FFS) payments made in 2019 ($484 Billion). This percentage will then be applied to the $30 Billion payment bucket to determine a provider’s payment under this program.
For example, if a facility had Medicare FFS revenue of $5 Million, that revenue would be divided by $484 Billion with the resulting percentage multiplied by the $30 Billion award bucket (($5 Million / $484 Billion)*$30 Billion ). In this example, the facility would receive a payment of $309, 917.
When will I receive my payment?
HHS is beginning to send payments on April 10, 2020. It is anticipated that the disbursement process for these funds will continue during the next week or two.
How will I receive my payment?
The US Department of Health and Human Services (HHS) has partnered with United Health Group to distribute the payments. United Health Group will disburse the funds based on the ACH information on file with CMS. The payment will come from Optum Bank and will have the payment description of “HHSPAYMENT”.
What will I need to do once the payment is received?
Beginning on the week of April 13, HHS will open up a portal for healthcare providers to accept the terms and conditions linked above. Each provider will be required to submit their attestation within 30 days of receipt of the funds.
In addition to this $30 Billion Provider Relief Fund, an additional $70 Billion was authorized to assist providers who are dealing with COVID-19. Additional details on how the remaining funds will be allocated have not been announced.
Please contact our office with any questions.