The Department of Health and Human Services (HHS) has begun distributing the remaining $20 billion of the $50 billion general distribution to Medicare providers allocated through the CARES Act. HHS said its goal is to augment providers’ funding so that the entire $50 billion general distribution is allocated proportionally to providers’ share of 2018 net patient revenue.
The remaining funds will be distributed through an automatic distribution to Medicare providers who previously submitted cost reports and through subsequent waves of distributions based on applications providers submit to the HHS General Distribution Portal. HHS said that the general distribution will ideally replace a percentage of providers’ annual gross receipts, sales, or program services revenue.
Medicare providers who have already received a payment from the Provider Relief Fund through April 24 are eligible to apply for additional funds by submitting data about their annual revenues and estimated COVID-related losses via the General Distribution Portal. While providers received the initial funds automatically, in this disbursement, HHS requires providers to submit their revenue information through the General Distribution Portal, so the cost report data can be verified.
HHS will be processing applications submitted through the General Distribution Portal in batches every Wednesday at noon ET. The funds will not be distributed on a first-come-first-served basis; therefore, applicants will be given equal consideration regardless of when they apply before each processing deadline and will not be penalized for taking several days to collect the required information. HHS plans to issue payments on a weekly rolling basis, as information is validated. It estimates that the first payments will go out ten business days after the first submission deadline.