The Department of Health and Human Services (HHS) announced
late on June 9 that it was releasing $25 billion in funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act to high Medicaid
providers and to safety net hospitals. Although HHS has been distributing funds from CARES to providers for a couple of months now, there has been concern that providers that treat a large number of Medicaid beneficiaries have not received a targeted allocation.
The newly announced $25 billion Medicaid-specific allocation is divided into two components: (1) $15 billion in a Medicaid and CHIP targeted distribution; and (2) $10 billion to safety net hospitals. HHS has already posted the applicable Terms & Conditions for this fund
For the first $15 billion component
, HHS explains that the money will be going to “eligible” Medicaid and CHIP providers. Fund recipients will have to go to an HHS portal and enter their annual patient revenue and information about the number of Medicaid patients the provider treats. HHS says that the allocation to providers will be approximately 2% of their patient revenue. Providers can qualify if they billed Medicaid or Medicaid managed care plans between January 1, 2018 and May 31, 2020.
In order to be an “eligible” provider, the recipient cannot have received general distribution funding. HHS gives some examples of providers that might qualify for the $15 billion allocation, including home and community based services providers
HCP will provide updates on the application portal as it becomes available.