Additional Funding for Medicaid/CHIP Providers and Safety Net Hospitals

June 15, 2020

On June 9, 2020, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced additional funding opportunities available to Medicaid/CHIP providers and safety net hospitals:

  • $15 billion from the Provider Relief Fund to eligible Medicaid and Children’s Health Insurance Program (CHIP) providers.
  • $10 billion in Provider Relief Funds to safety net hospitals serving a disproportionate number of Medicaid patients or providing large amounts of uncompensated care.

Last month, Department of Health Care Services (DHCS) requested comprehensive payment data from Managed Care Plans (MCPs) in response to an urgent request from the Centers for Medicare & Medicaid Services (CMS). The data submitted from all states to CMS as part of that request will be used to validate this next round of provider relief funding.

Providers who have not yet received General Distribution funding may submit their annual patient revenue information to the enhanced Provider Relief Fund Portal to receive a distribution equal to at least two percent of reported gross revenues from patient care. This funding will supply relief to Medicaid and CHIP providers experiencing lost revenues or increased expenses due to coronavirus disease 2019 (COVID-19). To be eligible for this funding, health care providers must not have received payments from the $50 billion Provider Relief Fund General Distribution and either have directly billed their state Medicaid/CHIP programs or Medicaid MCPs for healthcare-related services between the dates of January 1, 2018, and May 31, 2020. More information about eligibility and the application process is available on the HHS website.

HHS also announced the distribution of $10 billion in Provider Relief Funds to safety net hospitals. Payments will go to hospitals that serve a disproportionate number of Medicaid patients or provide large amounts of uncompensated care. Recipients will receive a minimum distribution of $5 million and a maximum distribution of $50 million. On June 8, 2020, HHS sent communications to all hospitals asking them to update information on their COVID-19 positive-inpatient admissions for the period January 1, 2020, through June 10, 2020. This information will be used to determine a second round of funding to hospitals in COVID-19 hotspots to ensure they are equitably supported in the battle against this pandemic. To determine their eligibility for funding under this $10 billion distribution, hospitals must submit their information by June 15, 2020, at 9 p.m. Eastern Time (ET).

For more information on the Provider Relief Fund, visit the HHS website.