On July 30, 2020, HHS released several new Frequently Asked Questions (FAQs) regarding payments distributed to providers under the Coronavirus Aid, Relief, and Economic Security (CARES) Act Provider Relief Fund. Providers must meet certain eligibility requirements to receive the funds and the FAQs provide additional detail regarding provider eligibility and reporting requirements.

Importantly, the FAQs provide any parent entity that receives a Provider Relief Fund Targeted Distribution payment, (i.e., payment to skilled nursing facility, safety net hospital, rural, tribal, or high impact area) must transfer the funds to be used by the subsidiary. The FAQs add that the purpose of Targeted Distribution payments is to support the specific financial needs of the eligible healthcare provider, so the control and use of the funds must be delegated to the eligible subsidiary that qualified for the payments.

The new FAQs include several questions related to Medicaid, CHIP, and dental provider eligibility. According to the new FAQs, a healthcare provider is eligible to receive a payment from the Provider Relief Fund’s Medicaid, CHIP, and Dental Providers Distribution even if the provider received funding from the Small Business Administration’s (SBA) Payroll Protection Program, or the Federal Emergency Management Agency (FEMA), or has received Medicaid’s Home and Community Based Services (HCBS) retainer payments. The receipt of funds from the SBA, FEMA, or HCBS does not preclude a healthcare provider from being eligible for the Provider Relief Funds as long as the provider otherwise meets the criteria for eligibility. Also, for providers not on the curated list of known Medicaid/CHIP providers, the Health Resources and Services Administration will be working directly with state/territory Medicaid or CHIP agencies for validation rather than be reaching out directly to individual providers.

Audit and reporting requirements were also an important topic of the FAQs. HHS announced Provider Relief Fund payments must be included in calculating whether HHS requires an audit of federal awards to non-federal entities and commercial organizations pursuant to 45 CFR Part 75, Subpart F (i.e., annual total federal awards expended are $750,000 or more).

The July 30 FAQs, along with all previous FAQs, are available on HHS’ website here.