This article was written and produced by Kelley DeMonte, Partner, and Kathleen Angelone, Principal. Looking to get in touch with Kelley or Kathleen? Reach out today: kdemonte@bonadio.com, kangelone@bonadio.com.
FEMA PA Program Provides Funds for COVID-19 Testing: Not-For-Profits
FEMA recently announced that they will increase the share of vaccine claims from 75% to 100%.
Private, non-profit nursing homes and hospitals are eligible for additional FEMA funds for COVID-19 testing. Eligible costs include purchase and delivery of PPE and testing supplies; medical waste disposal related to testing; labor costs associated with testing; and testing site cost. Please note that FEMA prohibits funding for expenses reimbursed by other sources including HHS Provider Relief Funds, Medicare, Medicaid or private insurance, or any other funding source. Applicants must certify that this assistance is not duplicated by another funding source including but not limited to HHS funds and private or governmental insurers.
Unemployment Insurance for Self-Insured Not-For-Profits
On March 27, 2020, the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. This law included a provision whereby the federal government would cover 50% of the cost of self-insured NFPs’ unemployment insurance cost associated with the COVID-19 disruption. New York State was relatively slow to communicate a process by which this 50% credit would be applied to NFPs’ invoices. This resulted in invoices being delivered to self-insured NFPs for the full amount calculated without regard to the federal 50% coverage.
On January 14, 2021, New York State Secretary of Labor Roberta Reardon issued an executive order stating that the 50% of self-insured NFPs’ unemployment assessments not covered by the CARES Act would be covered by New York State, resulting in no liability for the self-insured NFPs. Note that this executive order also relieved “insured” employers from rate adjustments for the effect of 2020 unemployment claims.
For-Profit Providers: Can Provider Relief Funds be Used to Pay Taxes?
An HHS FAQ added on December 11, 2020, makes clear that HHS considers taxes imposed on Provider Relief Funds to be “healthcare related expenses attributable to Coronavirus” and can be paid with Provider Relief Fund money. This does NOT include Nursing Home Infection Control Distribution payments.
The information and advice we are providing for this matter relates to COVID-19 legislative relief measures. Because legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that could modify some of the advice and information provided to you, after the conclusion of our engagement. We, therefore, make no warranties, expressed or implied, on the services provided hereunder.