HHS announces how it will distribute additional funds to providers under CARES Act

The Department of Health and Human Services yesterday announced that it is distributing additional funds from the Public Health and Social Services Emergency Fund, beginning April 24. The Coronavirus Aid, Relief, and Economic Security Act added $100 billion to this fund to reimburse health care providers for health care-related expenses or lost revenues not otherwise reimbursed that are attributable to COVID-19.

HHS previously distributed $30 billion from this fund based on providers’ proportions of Medicare fee-for-service payments.

According to the HHS announcement, $20 billion will be allocated to providers generally. The payment made to each provider will take into account what they previously received under the $30 billion distribution, so that their total allocation under both waves ($50 billion total) is proportional to their share of 2018 total net patient revenue.

In addition, HHS said that $10 billion will be allocated to hospitals in areas that have been particularly impacted by COVID-19; $10 billion to rural hospitals and health clinics; and $400 million to Indian Health Service facilities. HHS also announced that providers that have treated uninsured patients with COVID-19 on or after Feb. 4, 2020, can request reimbursement at Medicare rates, subject to available funding.

See AHA President and CEO Rick Pollack’s statement yesterday for AHA’s reaction to the announcement.