Provider Relief Fund Phase 2 Eligibility: Clarifications and Further Questions
As explained in our prior alert, the Department of Health and Human Services (HHS) is offering certain Medicare providers an additional opportunity to apply—by August 28, 2020—for Provider Relief Fund (PRF) distributions from its Phase 2 General Distribution (Phase 2).
HHS’ original announcement had suggested that providers who experienced change of ownership (CHOW) challenges with receiving funding from the initial $50 billion Phase 1 General Distribution (Phase 1) would be eligible for Phase 2 payments. But revised guidance issued earlier this week (August 11 and 12, 2020) seems to indicate that CHOW-based funding may be limited to Medicare Part A providers who billed Medicare fee-for-service in 2019 and 2020.
To be clear, other Medicare providers—such as Medicare Part B providers—who have already received Phase 1 distributions are still eligible to apply for Phase 2 funding, but HHS has explained that their receipt of payments will be a function of whether their Phase 1 payments approximated 2% of their annual revenue from patient care.
At this time, it is unclear how HHS might view the Phase 2 application of a non-Medicare Part A provider requesting additional relief in connection with a CHOW, if that provider has already received approximately 2% of its annual revenue through Phase 1 distributions. Still, based on information available as of August 14, it seems that the potential pool of recipients of CHOW-based funding from Phase 2 is not as broad as HHS’ original announcement suggested.
Also this week, HHS provided additional information regarding Phase 2 for Medicaid, Medicaid managed care, Children’s Health Insurance Program, and dental providers. We encourage you to contact your health care counsel to discuss your potential Phase 2 eligibility.
Our Chambliss team continues to monitor health care developments and other legal impacts of the COVID-19 pandemic. Please contact Jed Roebuck, Courtney Keehan, or your relationship attorney if you have questions or need additional information.
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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.