The Department of Health & Human Services (DHHS) announced some Medicare providers who experienced challenges in the Phase 1 general distribution application period will get a second chance to apply for funds. This limited group of providers will have until August 28, 2020 to exercise this second chance to apply for funds. These applications will be processed alongside the Phase 2 general distributions for Medicaid, Medicaid managed care, CHIP, and dental providers, who now also have until August 28, 2020 to file their applications. Like the Phase 1 funding, the maximum total payment amount, inclusive of any Phase 1 payments, is 2 percent of the applicant’s annual patient revenue.
In addition to the other eligible Phase 2 provider types (e.g., Medicaid, CHIP, and dentists) this second chance is intended to be used by: (1) Medicare providers who received funds in Phase 1 of less than 2 percent of their annual revenues but did not meet the filing deadline earlier this year for reporting additional revenue information; (2) Medicare providers who received funds but decided to decline them and now wish to accept funds; and (3) Medicare providers who underwent a change of ownership in 2019 or 2020 and were as a result required to return funds received by prior owners.
To apply for the Phase 2 funding, a Provider must meet one of the following 6 requirements:
Additionally, to be eligible to apply, the applicant must meet all of the following requirements, as applicable:
Applicants will be required to complete an application and submit documentation including tax returns, and FTE and revenue worksheets through the provider relief application and attestation portal. DHHS indicates that payments will take between five and seven weeks to process and will be paid on a rolling basis as information is validated. These funds will be subject to the same attestation and reporting requirements as all other provider relief funds.
This second chance is not available to all providers, including those that are newly formed in 2020. DHHS has indicated it is still working to address payments to providers that opened in 2020 and providers that do not bill Medicare and, as such, have not received funds. More information should be forthcoming for these providers.
DHHS will host a webinar on August 13 to provide additional detail on the application process.