HHS Releases Grant Money to Medicaid Providers

Date June 16, 2020
Article Authors
HBK CPAs & Consultants

On June 9, the Department of Health and Human Services (HHS) announced the distribution of an additional $15 billion from the Provider Relief Fund to Medicaid and Children’s Health Insurance Program (CHIP) providers. The distribution is intended to make supply relief available to the 38 percent of Medicaid and CHIP providers who did not receive payments in the initial General Distribution of Provider Relief Fund Payments in April and May.

Eligible providers include, but are not limited to, assisted living facilities, pediatricians, obstetrician-gynecologists, dentists, opioid treatment providers, and behavioral health clinicians. These monies, like the General Distribution, are extended as a grant that requires recipients to meet HHS compliance criterion.

To be eligible, providers must have:

  • Not received payments from the $50 billion Provider Relief Fund General Distribution, and
  • Directly billed their state Medicaid/CHIP program or Medicaid managed care plans for healthcare-related services between January 1, 2018 to May 31, 2020

Eligible providers who submit an application will receive a payment equal to at least 2 percent of their reported gross revenue from patient care. The application deadline is July 20, 2020.

The provider should have the following available for the application:

  • “Gross Receipts or Sales” or “Program Service Revenue” as submitted on its federal income tax return broken out by payer mix
  • Estimated revenue losses in March 2020 and April 2020 due to COVID-19
  • Copy of the most recently filed federal income tax return
  • Listing of the Tax Identification Numbers of subsidiary organizations that do not file separate tax returns
  • Copy of IRS Form 941 or 940 for the first quarter of 2020

If you have any questions, HBK’s Healthcare Solutions team is here to help. Feel free to contact us at (330) 758-8613 or email me directly at kcrouthamel@hbkcpa.com.

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