Provider Relief Fund June 3 Deadline Is Last Chance for "True Up" Payment for Medicare providers

Regulation | June 02, 2020 | by Nicole Fallon

URGENT UPDATE as of 4p ET -- All providers who have received General Distribution payments must attest and submit financial information "no later than June 3."

Late last night HHS clarified for LeadingAge staff that the June 3 deadline applies to those Medicare providers who have yet to receive and are seeking a second "true up" payment from the $50 billion General Distribution tranche of the Provider Relief Fund.  All other providers have 90 days from receipt of the payments to attest for the payments they've received.

Providers will recall that HHS sent out General Distribution payments to all providers who bill Medicare FFS beginning April 10. Some providers received a second payment based off their 2018 net patient revenue from their Medicare cost report. Other providers did not receive a second payment. HHS has notified providers who received two payments from the General Distribution and those seeking a second payment must take the following steps by June 3: 1) submit an attestation to HHS through the Attestation Portal AND financial information including federal income tax returns and March and April lost revenues through the General Distribution portal by June 3 to remain eligible for the 2nd payment. Following this submission, providers will receive an email notifying them when their application is completed. HHS will also notify providers as to the final status of their application for these funds. Originally, HHS said it would process payments within 10 business days of the application but now has changed this to they are trying to “process payments as quickly as possible.”

The allocation methodology for the General Distribution payments is designed to provide relief to providers, who bill Medicare fee-for-service, by providing payments that total at least 2% of that provider’s net patient revenue regardless of the provider’s payer mix. HHS determines payments based on the lesser of 2% of a provider’s 2018 (or most recent complete tax year) net patient revenue OR the sum of incurred losses for March and April. If the initial General Distribution payment providers received between April 10 and April 17 was determined to be at least 2% of their annual patient revenue, the provider may not receive an additional General Distribution payment.

Providers can calculate their estimated total General Distribution payment using the following formula: 

Divide your "Gross Receipts or Sales" or "Program Service Revenue" by 2.5 trillion and then multiply by 50 billion.  = ((Gross Receipts or Sales) / 2,500,000,000,000) * 50,000,000,000 = Total Allocation (total of first plus second payment)

If a provider's first payment was close to this number, it is possible it will not receive a second payment. Nonetheless the last chance for providers to receive a "true up" payment from the General Distribution tranche is Wednesday, June 3.  This does not mean a provider will not be eligible for other, future targeted payments through the Provider Relief Fund. LeadingAge advises all Medicare providers who did NOT receive a second payment to submit their attestation and financial information by Wednesday, June 3.


All other providers -- those who received a targeted SNF-only distribution -- have 90 days from the receipt of each of these payments to attest to the terms and conditions or reject the funds. LeadingAge continues to seek clarification on a number of questions members have including HHS's interpretation of lost revenues and eligible COVID-19 expenses. 

HHS also updated its  FAQs (published June 1) for the Provider Relief Fund on June 1. LeadingAge will provide analysis and information on the new FAQ information in a separate article.