CARES Act receives additional funding

Last week, President Donald Trump passed a bill allocating an additional $310 billion in funding to the Payroll Protection Program (PPP) as part of an overall increase to the CARES Act stimulus. For those who did not receive funding during the first wave of the CARES Act, this update to the stimulus package may be crucial as we continue to navigate the landscape that COVID-19 has created for businesses.

The below information can be found on the U.S. Department of Health & Human Services website:

    • $50 billion of the Provider Relief Fund is allocated for general distribution to Medicare facilities and providers impacted by COVID-19, based on eligible providers’ 2018 net patient revenue.

 

    • To expedite providers getting money as quickly as possible, $30 billion was distributed immediately, proportionate to providers’ share of Medicare fee-for- service reimbursements in 2019. On Friday, April 10, $26 billion was delivered to bank accounts. The remaining $4 billion of the expedited $30 billion distribution was sent on April 17.

 

    • This simple formula, working with the data we had, was used to get the money out the door as quickly as possible. We were very clear that additional funds would be going out quickly to help providers with a relatively small share of their revenue coming from Medicare fee-for-service, such as children’s hospitals.

 

    • Those funds are beginning to be delivered this week. HHS will begin distribution of the remaining $20 billion of the general distribution to these providers to augment their allocation so that the whole $50 billion general distribution is allocated proportional to providers’ share of 2018 net patient revenue.

 

    • On April 24, a portion of providers will automatically be sent an advance payment based off the revenue data they submit in CMS cost reports. Providers without adequate cost report data on file will need to submit their revenue information to a portal opening this week at https://www.hhs.gov/providerrelief for additional general distribution funds.
      • Providers who receive their money automatically will still need to submit their revenue information so that it can be verifiedvia the General Distribution Portal .

 

    • Payments will go out weekly, on a rolling basis, as information is validated, with the first wave being delivered at the end of this week (April 24, 2020).

 

 

    • The Terms and Conditions also include other measures to help prevent fraud and misuse of the funds. All recipients will be required to submit documents sufficient to ensure that these funds were used for healthcare-related expenses or lost revenue attributable to coronavirus. There will be significant anti-fraud and auditing work done by HHS, including the work of the Office of the Inspector General.

 

    • President Trump is committed to ending surprise bills for patients. As part of this commitment, as a condition to receiving these funds, providers must agree not to seek collection of out-of-pocket payments from a presumptive or actual COVID-19 patient that are greater than what the patient would have otherwise been required to pay if the care had been provided by an in-network provider.

The additional funding has been approved at the same time as many states are beginning to announce reopen dates for small businesses. With a lengthy backlog of applications already in the PPP system, applying for your funding is now more important than ever. The number of applicants far outweighs the funds available, so signing up sooner rather that later will give you a much better chance of receiving your additional wages.

If you were unable to receive allocated funds the first time around, now is the time to sign up. Click here for more information from HHS about the updates to the CARES Act. Do not wait– there will not be enough cashflow to go around to every small business that applies for aid.