Funding will be based on 2019 Medicare fee-for-service reimbursements

The Department of Health and Human Services (HHS) will begin delivery of the initial $30 billion in relief funding to providers on April 10 in support of the national response to COVID-19, the first batch of funding allocated from the of the $100 billion provider relief fund created in the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted on March 27. According to a fact sheet distributed by Senate Majority Leader Mitch McConnell's (R-KY) office, $26 of the $30 billion is expected to be delivered to providers' bank accounts by the end of the day.

The $100 billion provider relief fund created in the CARES Act is aimed at supporting health care providers with COVID-19-realted expenses or lost revenue. In an effort to immediately infuse providers with some of these much needed funds, Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma announced on Tuesday night (April 7) that $30 billion in immediate relief funds would be delivered to providers based on their share of 2019 Medicare fee-for-service (FFS) reimbursements.

Within 30 days of receiving the payments, providers must sign an attestation confirming receipt of the funds and agreeing to the terms and conditions of payment. While Verma on Tuesday said the funds would be "no strings attached," it is expected that providers will be barred from sending so-called "surprise" medical bills to coronavirus patients if they receive funding from the $100 billion pot. According to the fact sheet: "As a condition to receiving these funds, providers must agree not to seek collection of out-of-pocket payments from a COVID-19 patient that are greater than what the patient would have otherwise been required to pay if the care had been provided by an in-network provider." The portal for signing the attestation will be open the week of April 13, 2020 and will be linked (along with currently available guidance) from www.hhs.gov/providerrelief.

HHS is partnering with UnitedHealth Group (UHG) to deliver the initial $30 billion distribution to providers, who will be paid via Automated Clearing House account information on file with UHG, UnitedHealthcare, or Optum Bank, or used for reimbursements from CMS. Providers who normally receive a paper check for reimbursement from CMS will receive a paper check in the mail for this payment as well, within the next few weeks.

HHS and the administration are also working on how to allocate the additional $70 billion in funding, hoping to target additional distributions to providers in areas particularly impacted by the COVID-19 outbreak, rural providers, and providers of services with lower shares of Medicare FFS reimbursement or who predominantly serve the Medicaid population. This funding will also be used to reimburse providers for COVID-19 care for uninsured Americans.

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