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HHS to Issue Additional $25 Billion in Provider Relief Aid to Medicaid and CHIP Providers

On June 9, 2020, the Department of Health and Human Services (HHS) announced that additional distributions from the Provider Relief Fund established under the CARES Act will be made to eligible Medicaid and Children’s Health Insurance Program (CHIP) providers. HHS will distribute approximately $15 billion to Medicaid and CHIP providers that have not received a payment from the Provider Relief Fund and $10 billion to safety net hospitals that serve the most vulnerable populations. Medicaid and CHIP providers who have not yet received Provider Relief Fund payments can report their annual patient revenue information to HHS’s enhanced Provider Relief Fund Payment Portal to receive a distribution of at least 2% of reported gross revenue from patient care. Assisted living facilities and other home and community-based service providers that have previously missed out on payments that targeted Medicare-supported nursing homes may be eligible for distributions. All providers should be prepared to submit federal tax returns for 2017-2019, the first quarter federal tax return for 2020, a federal unemployment tax return, a worksheet for calculating the provider’s number of full-time employees, and a worksheet for calculating gross revenue. You can read more about the anticipated effects of the reporting and distribution process here.