The U.S. Department of Health and Human Services (HHS) is now allowing dental providers that don’t file for Medicare or Medicaid reimbursements to apply for assistance from the Provider Relief Fund, provided they meet certain eligibility criteria. Eligible dental providers have until July 24, 2020 to access the Enhanced Provider Relief Fund Payment Portal and complete the application process.
The HHS has posted FAQs on its website, explaining eligibility requirements and other program conditions as it relates to dental providers.
In order to be eligible for the Enhanced Provider Relief Fund Payment Program, dental providers must be in good standing, not be excluded from receiving federal payments, and meet ALL of the following criteria:
- must not have received payment from the initial $50 billion Medicare-focused General Distribution
- must not have received payment from the $15 billion Medicaid and CHIP Distribution
- must have either (i) filed a federal income tax return for fiscal years 2017, 2018 or 2019 or (ii) be an entity exempt from the requirement to file a federal income tax return and have no beneficial owner that is required to file a federal income tax return. (e.g. a state-owned hospital or healthcare clinic)
- must have provided patient dental care after January 31, 2020
- must not have permanently ceased providing patient dental care directly, or indirectly through included subsidiaries
- if the applicant is an individual, have gross receipts or sales from providing patient dental care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a (statutory) employee.
An article posted by the American Dental Association (ADA) stated, “The American Dental Association worked closely with HHS and the Health Resources and Services Administration, which administers the fund, to implement this for dentists. As a result of this advocacy, eligible dentists will receive a reimbursement of 2% of their annual reported patient revenue.” The FAQs clarify that “payments will be based upon 2% of (revenues * percent of revenues from patient care) for most recent tax filing, as reported by the applicant, and with accompanying submitted tax documentation.”
There are a few things dental providers should carefully consider before applying. This distribution is not a loan and will not need to be paid back; however, it is considered taxable income. In addition, recipients of the Enhanced Provider Relief Fund payment are required to consent to their payment information being made publicly available. Lastly, the funds can only be used for health care related expenses and lost revenues attributable to coronavirus that have not already been covered by other financial relief sources, such as the Small Business Association’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).
Price Kong is here to help you with questions related to the Enhanced Provider Relief Fund Payment Program or any other issues you may be facing. Please contact us if you have questions or concerns at 602.776.6300.