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Important updates from the HHS, w/o August 3, 2020

Tiffany Karlin

August 06, 2020

This update includes three key sections:

  • HHS Extends Application Deadline for Medicaid and Dental Providers;
  • Change of Ownership Funding Access to HHS Funds; and
  • Requests for Additional Reimbursement available to Medicare Providers.

Health and Human Services made the following announcements this week:

  • Application for Phase 2 General Distribution to Medicaid, Medicaid Managed Care, Children’s Health Insurance Program (CHIP) and Dental Providers has been extended; and
  • Certain Medicare providers who experienced challenges during the Phase 1 Medicare General Distribution application period will be given a second opportunity to receive funding.

Medicaid, CHIP & Dental (Phase 2 General Distribution) Deadline Extension

Click here for original alert.

  • Phase 2 of the General Distribution ($15 Billion allocation) was determined to be advantageous for providers participating in state Medicaid and CHIP programs that did not receive funding in Phase 1, Medicare General Distribution, and certain dental providers. The initial deadline of July 20, 2020 was extended to August 3, 2020 based on provider feedback; and, has been extended to August 28, 2020 to provide as much flexibility as possible for certain providers;
  • A simplified application form will be provided to improve the provider experience; and
  • Portal to apply:

Second Chance for Certain Medicare Providers

Click here for original alert.

  • Starting the week of August 10, 2020, HHS will allow Medicare providers (that missed the opportunity to apply for additional funding from the $20 billion portion of the $50 billion Phase 1 Medicare General Distribution) to apply for additional funding;
  • Providers that did not submit comprehensive cost reports with CMS were asked to submit revenue information to receive the balance of their 2% payment of General Distribution funds;
  • Some providers, including many Medicaid, CHIP, and Dental Providers with low Medicare revenues, did not complete an application by the deadline for this additional $20 billion round of funding;
  • HHS is now giving those eligible providers another opportunity to apply for additional funding; and
  • You will have until August 28, 2020, to complete an application to be considered for the balance of your additional funding (up to 2% of annual patient revenues).

Payments for Providers with a Change in Ownership:

  • Some providers or provider practices that experienced a change in ownership during 2020 missed out on payments, as these payments were distributed to previous owners who are now required to return the payments to HHS;
  • HHS promised to give new owners a separate opportunity to apply for provider relief funding;
  • Beginning the week of August 10, 2020 providers who experienced change in ownership challenges may submit their revenue information, along with documentation proving a change in ownership, by August 28, 2020 for consideration for Provider Relief Fund payment; and
  • HHS is currently working to address relief payments to new providers in 2020, along with those that have yet to receive any funding for a variety of reasons, i.e., they may only bill commercially, or do not directly bill for the services they provide under the Medicare and Medicaid programs, and thus did not receive any funding yet.

Once portals are accepting applications, and additional information is made available, Mueller Prost will keep you informed. Please contact our team with any questions – we are here to help.

Reminders on reporting in case you missed it:

HHS Reporting Requirements

HHS Audit Requirements

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