The deadline to apply for the CARES Act Provider Relief Fund (PFR) Phase 2 General Distribution Funding for Medicaid, Medicaid managed care, Children’s Health Insurance Program (CHIP), dental providers, and certain Medicare providers has been extended to September 13, 2020.
The PRF allocates $175 billion to qualified health care and dental providers. These payments, administered by The Health Resources and Services Administration (HRSA), do not need to be repaid to the US government, assuming providers comply with the terms and conditions.
Providers that have not applied in the past can do so on the U.S. Health and Human Services (HHS) website. Below is an outline of the six step process:
- Determine Eligibility
- Validate Tax ID Number (TIN)
- Apply for Funding – Phase 2
- Receive Payment
- Attest to Payment
- Report on Use of Funds
Attesting to payment and reporting on use of funds are the two steps for which many providers have question.
Attest to Payment and Terms and Conditions
Providers that have received payments through General Distribution funding must accept or reject funds within 90 days. Failing to actively attest within 90 days will be viewed as acceptance. Providers that accept payment must also attest to the terms and conditions, which include providing consent to public disclosure of payment. For information on how to accept the funds and attest to the terms and conditions, read the Attestation FAQs and Terms and Conditions FAQs.
Providers that reject payment must return funds to HHS within 15 calendar days. HHS has instructed providers to reject payments and return entire amount distributed if they do not have or anticipate having COVID-related eligible expenses or lost revenue equal to or in excess of the payment received. Rejecting payment does not necessarily disqualify a provider from being considered for future fund distributions. For information about how to reject the funds, read the Rejecting Payments FAQs. For instructions on returning payment and receiving correct distribution, when applicable, contact the Provider Support Line at (866) 569-3522 (for TYY, dial 711).
Providers that did not receive enough funding through Phase 1 or 2 can reapply if and when there are additional distributions. Those that received a distribution in excess of their current lost revenues or increased costs may keep the payment if they expect their COVID-related losses and costs to exceed the intended calculated payment.
Report on Use of Funds
Recipients of PRF, that received one or more payments exceeding $10,000 in the aggregate from the PRF, are required to comply with the reporting requirements outlined in the attested to terms and conditions and other issued by the HHS Secretary. Distributed funds should be spent on lost revenue or increased costs related to COVID-19, including, but not limited to:
- Workforce training
- Reporting COVID-19 test results to federal, state, or local governments
- Building or constructing temporary structures for COVID-19 patient care or non-COVID-19 patients in a separate area
- Acquiring additional resources, including facilities, supplies, or staffing to expand or preserve care delivery
- Developing and staffing emergency operation centers
Within 45 days of the end of the 2020 calendar year, all recipients must report on the use of funds through December 31, 2020. Those that have fully allocated funds on eligible expenses before December 31, 2020 may submit one report at any time between October 1, 2020 and February 15, 2021. Providers that have unexpended funds by December 31, 2020 will need to submit a second and final report by July 31, 2021, at which time, all distributions must be spent on eligible expenses or returned to HHS.
The PRF reporting system is targeted to be available on the HHS website by October 1, 2020. The HHS has indicated that more detailed reporting instruction are to come and recommends providers continue to check the Provide Relief page for the latest updates. In addition, the HRSA plans to provide Q&A webinar prior to the submission deadline.