HHS Commits Billions to Medicaid, CHIP With Provider Relief Funds

In a recent announcement, the US Department of Health and Human Services (HHS) outlined its plans to provide additional distributions from the Provider Relief Fund to eligible providers that participate in Medicaid and the Children’s Health Insurance Program (CHIP).

The agency explained plans to administer an approximate $15 billion to the 38% of providers who did not already receive a payment from the Provider Relief Fund General Allocation under the CARES Act. The press release also reveals that an additional $10 billion will be provided to safety net hospitals that serve some of the most vulnerable citizens.

“Health care providers who focus on treating the most vulnerable Americans, including low-income and minority patients, are absolutely essential to our fight against COVID-19,” said HHS Secretary Alex Azar. “HHS is using funds from Congress, secured by President Trump, to provide new targeted help for America’s safety-net providers and clinicians who treat millions of Medicaid beneficiaries.”

Additional resources like an enhanced provider relief fund payment portal was also launched. This portal will provide a platform for Medicaid and CHIP providers to report patient revenue.

“The payment to each provider will be at least 2% of reported gross revenue from patient care,” stated HHS in a press release. “The final amount each provider receives will be determined after the data is submitted, including information about the number of Medicaid patients providers serve.”

HHS expects nearly one million health care providers to be eligible for this round of funding. To be eligible: “Health care providers must not have received payments from the $50 billion Provider Relief Fund General Distribution and either have directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for health care-related services between January 1, 2018, to May 31, 2020.”

The additional $10 billion allocation for safety net hospitals will go to meet the following parameters:

• A Medicare Disproportionate Payment Percentage of 20.2% or greater;
• Average Uncompensated Care per bed of $25,000 or more; and
• Profitability of 3% or less, as reported to CMS in its most recently filed Cost Report.

Eligible hospitals will receive a minimum of $5 million and a maximum of $50 million.

More information regarding the specifics of provider funding, as well as details for the application process is available on the HHS
website. —Edan Stanley