July 16, 2020
The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) allocated $100 billion to support expenses or lost revenue attributable to COVID-19 and to ensure uninsured Americans receive testing and treatment for COVID-19. The Department of Health & Human Services (“HHS”) distributed more than $50 billion in general distributions and targeted distributions since April. In its upcoming distribution, HHS expects to distribute approximately $15 billion of the allocated funds to providers that have not yet received payment from the Provider Relief Fund general distribution and that participate in Medicaid/CHIP programs or Medicaid managed care plans.
Who is eligible for the upcoming Medicaid and CHIP distribution?
Providers who are interested in receiving funds from the upcoming Medicaid and CHIP distribution must meet the following requirements:
- Did not receive payment from the $50 billion general distribution;
- Directly billed Medicaid or CHIP for healthcare-related services during the period of January 1, 2018 to December 31, 2019 or own an included subsidiary that billed Medicaid or CHIP for healthcare-related services during the period of January 1, 2018 to December 31, 2019;
- Filed a federal income tax return for fiscal years 2017, 2018, or 2019 or is an entity exempt from the requirement to file a federal income tax return and has no beneficial owner that is required to file a federal income tax return;
- Provided patient care after January 31, 2020;
- Did not permanently cease providing patient care directly or indirectly through included subsidiaries; and
- If the provider is an individual, have gross receipts or sales from providing patient care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a statutory employee.
When is the application deadline?
Providers interested in applying for the Medicaid and CHIP distribution must do so by Monday, July 20, 2020. Before applying through the Enhanced Provider Relief Fund Payment Portal, applicants should download the Medicaid Provider Distribution Application and review the Medicaid Provider Distribution Instructions.
When will payments be sent?
Payments from the Medicaid and CHIP distribution will be disbursed on a rolling basis as information is validated.
If a provider receives payment from the Medicaid and CHIP distribution, how long does the provider have to accept or reject the payment?
Within 90 days of payment, providers allocated amounts from the Medicaid and CHIP distribution must sign an attestation confirming receipt of funds and agree to the Terms and Conditions.