HHS Extends Application Deadline for Phase 2 Funds

Late Friday, July 31, the Department of Health and Human Services (HHS) extended the application deadline for Phase 2 general distribution of CARES Act funds for Medicaid, CHIP and dental providers. The deadline, first extended to Monday, August 3, now extends to Monday, August 28, allowing eligible providers additional time to prepare and file their applications.

Along with the extension, HHS released two additional key provisions:

1. A new application would allow certain Medicare providers a second chance for relief funds of up to 2 percent of their annual patient revenues. In April, many of these Medicare providers received automatic payments based on their 2019 Medicare fee-for-service revenue. In the event this payment did not reach the intended goal of 2 percent of that practice’s annual revenues, providers could have applied for additional funding. Beginning the week of August 10, HHS will allow these Medicare providers—including private physician practices, facilities, etc.—who previously missed the opportunity to apply for additional funding. These applications will also be due by Monday, August 28.
2. HHS relied on 2019 data to determine the automatic payments in the original round of funding. In the event a provider or provider practice had a change in ownership in 2020, these payments might have gone to the original owners. Beginning the week of August 10, providers that did not receive funding due to a change in ownership may submit their revenue information, along with documentation proving a change in ownership, by August 28 for consideration for a Provider Relief Fund payment.



The HHS said it is working to address relief payments to new providers in 2020 along with those that have yet to receive funding for a variety of reasons. Those yet to receiving funding include providers that only bill commercially or do not directly bill for the services they provide under the Medicare and Medicaid programs.