This article was written and produced by Margaret Lally, The Bonadio Group. Looking to get in touch with Margaret? Reach out today: email@example.com.
The CARES Act, signed into law on March 27, 2020, provides $100 billion in relief funds to hospitals and healthcare providers. The funds are made available to support healthcare-related expenses or lost revenue attributable to COVID-19 and to ensure the uninsured can get testing and treatment for COVID-19. $30 billion has already been or is in the process of being distributed immediately to all Medicare providers and the remaining $70 billion will be targeted to areas heavily impacted by COVID-19, rural providers, providers with a lower share of Medicare reimbursement, and providers requesting reimbursement for care provided to the uninsured.
Top 10 Takeaways:
- The payment amount is approximately 6.2% of the 2019 Medicare FFS Payments.
- Medicare Providers that received reimbursement in 2019 are eligible.
- Payments are NOT a loan and do not need to be repaid.
- Payments will be electronically deposited starting on April 10, 2020.
- Recipient must attest to terms and conditions within 30 days of receipt.
- Funds must be used to prevent, prepare for, and respond to COVID-19 or reimburse for expenses and lost revenue related to COVID-19.
- Reports detailing the use of funds and ensuring compliance will be required – be sure not to duplicate expenses already claimed elsewhere (i.e. FEMA grant, insurance claim).
- Records and cost documentation to substantiate the use of funds is required.
- The use of funds may be subject to audit.
- Recipient must refrain from balance billing for COVID-related treatment and must not bill in excess of in-network limits.
More details can be found here.
If you have questions or seek additional information about the CARES Act and the relief provided to hospital and healthcare workers, please contact a member of your Bonadio Healthcare Consulting Team.
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.