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HHS Allocations of CARES Act Provider Relief Fund

April 26, 2020

Last week HHS made an announcement regarding the remaining funding that was provided to health care providers under the CARES Act through the Provider Relief Fund. See below for a breakdown of funding. 

General Allocations:

  • $50 billion for general distribution to Medicare facilitates impacted by COVID-19, based on 2018 net patient revenue. $30 billion of this funding has already been distributed and was proportionate to providers share of Medicare fee-for-service reimbursements in 2019.
  • The remaining $20 billion of general distribution will be allocated in proportion to a providers’ share of 2018 net patient revenue.
  • A portion of providers will automatically be sent advance payments based off revenue data they submitted to CMS in cost reports, those without adequate data will need to submit a portal opening this week:
  • There will also be some providers to receive further, separate funding including skilled nursing facilities, dentists and providers that solely take Medicaid.
  • Payments will go out on a weekly rolling basis as information is validated. 

Targeted Allocations:

  • $10 billion for targeted distribution to hospitals in areas that have been particularly impacted by COVID-19.
  • The administration will use data received to distributed targeted funds to areas with the greatest impact from COVID-19 including consideration for those serving a significant disproportionate number of low-income patients. 

Uninsured Populations:

  • A portion of $100 billion of the fund will be used to reimburse healthcare providers, at Medicare rates for COVID-19 related treatment of the uninsured.
  • Any provider who gave treatment for uninsured COVID-19 patients on or after February 4, 2020 can request claims reimbursement through the program at be reimbursed at Medicare rates. More information can be found here:   

Allocations for Rural Providers:

  • $10 billion for rural health clinics and hospitals, with money distributed as early as this week on the basis of operating expenses. 

Allocation for Indian Health Service:

  • $400 million for Indian Health Service facilitates, distributed on the basis of operating expenses with funds being distributed as soon as this week.
  • Contact NCSL

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