After Long Wait, HHS Announces Medicaid CARES Act Allocation

Earlier this week, the Department of Health and Human Services (HHS) announced it was releasing $15 billion in funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act to high Medicaid providers. 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.

To be eligible for this funding, health care providers must not have received payments from the $50 billion Provider Relief Fund General Distribution and either have directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for healthcare-related services between January 1, 2018, to May 31, 2020.

HHS gives as an example of providers that might qualify for the $15 billion allocation, home and community based services providers.

The application portal is now OPEN. In recent discussions HCP understands that best practices in completing the application include: Be organized, Print and read the application, Print and read the instructions-- Page 2 of the instructions details the information needed to apply, Be prepared to enter data in one sitting - the portal does not save information. Once you start entering data you have to follow through to the end, otherwise you will have to re-enter all data.

HHS expects to distribute $15 billion to eligible Medicaid and CHIP providers. The payment to each provider will be at least 2 percent of reported gross revenue from patient care; the final amount each provider receives will be determined after the data is submitted, including information about the number of Medicaid patients providers serve.

HHS has also posted the applicable Terms & Conditions for this fund.

HHS explains that the money will be going to “eligible” Medicaid and CHIP providers. Funding recipients will have to enter their annual patient revenue and information about the number of Medicaid patients the provider treats.

The deadline to submit an application for the Medicaid Targeted Distribution is July 3, 2020. Funds are limited and will be disbursed on a rolling basis, as information is validated. HHS may seek additional information from providers as necessary to complete its review.