As part of the CAREs Act, signed on March 27, 2020, $50 billion was allocated for general distribution to Medicare facilities and providers impacted by COVID-19. An initial $30 billion was distributed between April 10 and April 17. The remaining $20 billion began distribution Friday, April 24. Many providers need to take action before receiving payment. Details on how to do that are below.
As we reported previously, the U.S. Department of Health & Human Services (HHS) disbursed $30 billion of funding to Medicare providing physicians as a direct deposit to their bank account based on the provider’s portion of Medicare fee-for-service spending in 2019.
HHS is now distributing the additional $20 billion to providers. The funding must be used to cover unreimbursed expenses or lost revenue due to the COVID-19 pandemic. The formula is based on a percentage of each provider’s 2018 net patient revenue from all payors, not just Medicare fee-for-service payments.
HHS began distribution of the remaining $20 billion to these providers on April 24 to augment their allocation so that the whole $50 billion general distribution is allocated proportional to providers’ share of 2018 net patient revenue.
On April 24, a portion of providers may have received a direct deposit for an advance payment based off the revenue data they submit in CMS cost reports. Providers without adequate cost report data on file will need to submit their revenue information to the General Distribution Portal for additional general distribution funds.
Providers who received an automatic deposit will still need to submit their revenue information so that it can be verified. They should submit it to the General Distribution Portal, as well.
Payments will go out weekly, on a rolling basis, as information is validated. The first tranche of disbursements began on April 24, 2020.
Providers, as with the $30 billion initial disbursement, will be required to confirm receipt of funds, make attestations and agree to Terms & Conditions. To electronically agree CLICK HERE .
To view the Terms and Conditions for the original $30 billion , CLICK HERE.
To view the Terms and Conditions for the current $20 billion disbursement, CLICK HERE.
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We are in this together,
Brinker Simpson & Company, LLC
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice & cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).