CARES Act Provider Relief Fund
Today, the Department of Health and Human Services (HHS) announced the delivery of the initial $30 billion tranche from the $100 billion provider relief fund established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed into law by President Trump on March 27, 2020.
HHS simultaneously released guidance regarding facility and provider eligibility for funding, as well as the terms upon which payment of this initial wave of dollars is conditioned.
Importantly, HHS reiterated that these funds are payments, not loans, which are separate and distinct from the billions of dollars the Centers for Medicare and Medicaid Services has already delivered under its Accelerated and Advanced Payment Program (AAPP).
We have previously explained the implications of the AAPP and its distinction from the provider relief fund in two separate client updates “Support for Health Care Providers During the COVID-19 Pandemic” and “Separate Funding for CMS AAPP and $100 Billion in Loans Under Cares.”
Facilities and providers will be allotted a portion of the $30 billion based on their share of 2019 Medicare fee-for-service (FFS) reimbursements. Funding is being distributed from Optum Bank—beginning today—by direct deposit using Automated Clearing House account information on file with the Centers for Medicare & Medicaid Services.
If you have any questions regarding your estimated payment pursuant to your 2019 Medicare FFS, the certifications HHS’ payment to you are conditioned upon, or your options for declining such payment, please contact Jed Roebuck, any other attorney in our Health Care section or your relationship attorney.
In the current climate, we know information is constantly changing, and our goal is to continue to provide you timely, practical information. Please contact Doug Griswold, Jed Roebuck, or your relationship attorney with any questions you have regarding the CARES Act or any other issues impacting you as a health care provider.
Visit our COVID-19 Insight Center for our latest legislative and legal updates, articles, and resources.
The material in this publication was created as of the date set forth above and is based on laws, court decisions, administrative rulings, and congressional materials that existed at that time, and should not be construed as legal advice or legal opinions on specific facts. In some cases, the underlying legal information is changing quickly in light of the COVID-19 pandemic. The information in this publication is not intended to create, and the transmission and receipt of it does not constitute, a lawyer-client relationship. Please contact your legal counsel for advice regarding specific situations.