Provider Relief Funds Allocated to Medicaid and CHIP Providers, Safety Net Hospitals

June 9, 2020

On June 9, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced additional distributions from the Provider Relief Fund to eligible Medicaid and Children's Health Insurance Program (CHIP) providers that participate in state Medicaid and CHIP programs.

HHS expects to distribute approximately $15 billion to eligible providers who have not received a payment from the Provider Relief Fund General Allocation. HHS also announced the distribution of $10 billion in Provider Relief Funds to safety net hospitals, with the distribution to occur the week of the announcement.

Medicaid and CHIP Providers
On June 10, HHS will launch an enhanced Provider Relief Fund Payment Portal that will allow eligible Medicaid and CHIP providers to report their annual patient revenue, which will be used as a factor in determining their Provider Relief Fund payment. The payment to each provider will be at least 2% of reported gross revenue from patient care; the final amount each provider receives will be determined after the data is submitted, including information about the number of Medicaid patients that providers serve.

To be eligible for this funding, health care providers must not have received payments from the $50 billion Provider Relief Fund General Distribution and must have directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for healthcare-related services between January 1, 2018, and May 31, 2020.

The initial General Distribution provided payments to approximately 62% of all providers participating in state Medicaid and CHIP programs. The Medicaid and CHIP targeted distribution will make the Provider Relief Fund available to the remaining 38%.

More information about eligibility and the application process is available on HHS’ website.  

$10 Billion Allocation for Safety Net Hospitals
HHS also announced the distribution of $10 billion in Provider Relief Funds to safety net hospitals. This payment is being sent directly to these hospitals via direct deposit and is going to hospitals that serve a disproportionate number of Medicaid patients or provide large amounts of uncompensated care. Qualifying hospitals will have:

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

Recipients will receive a minimum distribution of $5 million and a maximum distribution of $50 million.

Additional “Hotspot” Funding for Hospitals
On June 8, HHS sent communications to all hospitals asking them to update information on their COVID-19 positive-inpatient admissions for the period January 1, 2020, through June 10, 2020. This information will be used to determine a second round of funding to hospitals in COVID-19 hotspots. To be considered for funding from this $10 billion distribution, hospitals must submit their information by June 15, 2020 at 9:00 p.m. ET.

Visit HHS’ website for updated information and data on the Provider Relief Fund. For news, advocacy, and analysis on cancer policy, visit ASCO in Action.