Some good news as we approach the end of 2020. President Trump signed the $900 billion pandemic relief bill into law on December 27, 2020. Following is a summary of the healthcare provisions affecting our clients.
Deadline to expend Ohio CRF Extended
The stimulus bill gives providers an additional year to expend Ohio Coronavirus Funds (CRF). The new deadline is December 31, 2021 (previously 12/30/2020). The Office of Budget and Management sent the following message to recipients:
President Trump signed a stimulus bill late yesterday which extends the deadline for the Coronavirus Relief Fund (CRF) an additional year. As a result you will be able to use the Provider Relief funding through December 31, 2021. We will update our Provider Relief guidance accordingly once updated guidance is provided by the US Treasury.
Other Stimulus Bill Provisions
- Adds $3 billion to the Provider Relief Funds (PRF).
- Returns the definition of “lost revenue” to that in the June 2020 Frequently Asked Questions including the difference between actual and budgeted revenues if such budget had been established and approved prior to March 27, 2020.
- Clarifies that a parent organization may allocate all or any portion of PRF to eligible subsidiaries, including targeted distributions, but the reporting of reallocated PRF remains with the original recipient of the funds.
- 2% Medicare Part A and Part B Sequestration relief is extended to March 31, 2021.
- Offsets approximately 3.75% of the scheduled 9% cut to the Medicare Part B therapy payment rates.
There have been numerous different payments of General and Targeted funding from both Federal and State sources, and the terms and conditions governing the use of these funds varies. Although much is still unknown about the type of information that may be required to be reported in order to keep these funds, HHS’s current Post-Payment Reporting Requirements November 2020 guidance requires reporting of both lost revenue and COVID-related expense information.
The first report is due on February 15, 2021 and HHS has indicated that forms/schedules will be forthcoming, with the reporting portal scheduled to be opened by January 15th. HHS has issued “Frequently Asked Questions” (currently 58 pages long), and the guidance continues to be expanded and, in many instances, changed on a weekly basis. Providers may be called upon to submit information in a very short time frame. As of today, the FAQs have not yet been updated for the stimulus bill provisions noted above. We will be providing a template soon to our clients to assist in summarizing key information that may be required. We will continue to update you, as more is known. In the meantime, continue documentation and justification of COVID-related expenses and lost revenue.
HW&Co. is here to assist you in any way we can. Please visit the HW&Co. COVID-19 resource center on our website for additional resources or contact your HW Healthcare Advisor if you need assistance.
Disclaimer: Information in this article is subject to change and is based upon our current understanding as of the issue date. This is a constantly evolving process as HHS has been issuing new or changed guidance on a frequent basis.