On April 10, 2020, HHS announced it is beginning the delivery of an initial $30 billion in relief funding to providers as part of the $100 billion provider relief fund in the Coronavirus Aid, Relief, and Economic Security (CARES) Act in connection with the response to COVID-19. HHS states that the $100 billion of funding from the CARES Act will be used to support providers for healthcare-related expenses or lost revenue from COVID-19, as well as ensure that uninsured Americans are able to access testing and treatment.

The initial $30 billion in payments will be delivered to facilities and providers that received Medicare fee-for-service (FFS) reimbursements in 2019. Providers and facilities will be allotted a portion of the funds based on their share of 2019 FFS reimbursements. HHS has partnered with UnitedHealth Group (UHG) to deliver the payments. Providers will be paid via automated clearing house (ACH) account information on file with UHG, UnitedHealthcare, or Optum Bank, or used for reimbursements from CMS. Those providers who typically receive a paper check for reimbursement from CMS will receive a check in the mail for this payment in the coming weeks.

These payments do not need to be repaid, although recipients must agree to terms and conditions specified by CMS, including that the funds will only be used to prevent, prepare for, and respond to the novel coronavirus, and shall reimburse the recipient only for healthcare related expenses or lost revenues that are attributable to the novel coronavirus. Within 30 days of receiving payments, providers must sign an attestation confirming receipt of the funds and agreeing to the terms and conditions of payment. The terms and conditions can be found here.

With respect to the remaining $70 billion in funds, HHS states it is working on additional distributions focused on providers in areas disproportionally impacted by COVID-19, rural providers, providers of services with lower shares of Medicare FFS reimbursement, providers who predominantly serve Medicaid patients, and to reimburse providers for COVID-19 related care for uninsured patients.

Additional information is available on the HHS website here and here.