Two Important HHS Provider Relief Fund Updates - New Funds Available and Reporting Deadline Grace Period

Published in Government Relations on September 17, 2021

The Department of Health and Human Services (HHS) has announced 2 important updates (https://www.hhs.gov/about/news/2021/09/10/hhs-announces-the-availability-of-25-point-5-billion-in-covid-19-provider-funding.html) regarding the HHS Provider Relief Fund (PRF).

  1. An additional $25.5B in funding will be made available to eligible providers beginning September 29th. The funding will be available through 2 different source. $8.5B dollars will be made available through the American Rescue Plan, and an additional $17B has been added to create Phase 4 of the PRF. This additional $25.5B will be made available to providers who continue to experience pandemic related expenses and/or lost revenues. According to HHS Secretary Xavier Becerra, the “funding will be distributed with an eye towards equity, to ensure providers who serve our most vulnerable communities will receive the support they need." According to the HHS website, “Phase 4 payments will be based on providers' lost revenues and expenditures between July 1, 2020, and March 31, 2021. As part of the Biden-Harris Administration's ongoing commitment to equity, and to support providers with the most need, PRF Phase 4 will reimburse smaller providers—who tend to operate on thin margins and often serve vulnerable or isolated communities—for their lost revenues and COVID-19 expenses at a higher rate compared to larger providers. PRF Phase 4 will also include bonus payments for providers who serve Medicaid, CHIP, and/or Medicare patients, who tend to be lower income and have greater and more complex medical needs. HRSA will price these bonus payments at the generally higher Medicare rates to ensure equity for those serving low-income children, pregnant women, people with disabilities, and seniors.” While the new funding is available through 2 separate sources, HHS has said that providers will be able to apply for both programs via one application. HRSA will use existing Medicaid, CHIP and Medicare claims data in calculating payments. Again, the application portal will open on September 29, 2021. To help ensure that these provider relief funds are used for patient care, PRF recipients will be required to notify the HHS Secretary of any merger with, or acquisition of, another health care provider during the period in which they can use the payments. Providers who report a merger or acquisition may be more likely to be audited to confirm their funds were used for coronavirus-related costs.
  1. An extension of the September 30th deadline for the first reporting window. Because of the challenges which providers continue to face as a result of some natural disasters as well as the Delta variant of COVID-19, HHS has announced a 60-day grace period to help providers come into compliance with the reporting requirements of the PRF. Providers who are required to report in this first reporting window, which has a deadline of September 30th, are still encouraged to do all they can to meet that September 30th deadline. However, should they fail to meet that deadline, they will be granted that additional 60 days. While the deadlines to use funds and the Reporting Time Period will not change, HHS will not initiate collection activities or other enforcement actions for noncompliant providers until after the 60 day grace period has passed.

TAGS

  1. hhs
  2. phe
  3. vgm government

From Our Experts

CMS Releases Updated Telehealth FAQ After Funding Bill Extends Flexibilities Through 2027 thumbnail CMS Releases Updated Telehealth FAQ After Funding Bill Extends Flexibilities Through 2027 Earlier this week, Congress extended Medicare telehealth flexibilities through Dec, 31, 2027, as part of the newly signed federal funding bill. In response, CMS has released updated Telehealth Frequently Asked Questions (FAQ) to provide clarity on what the extension means for both patients and providers. Shutdown Ends, Telehealth Prevails as Pres. Trump Signs Funding Bill thumbnail Shutdown Ends, Telehealth Prevails as Pres. Trump Signs Funding Bill The four-day partial federal government shutdown officially ended on Feb. 3, 2026, after President Donald Trump signed a $1.2 trillion funding package that reopens most federal agencies and restores key programs. CMS Releases New HCPCS thumbnail CMS Releases New HCPCS The Centers for Medicare & Medicaid Services (CMS) released an update adding eight new oxygen HCPCS codes to the Required Face-to-Face and Written Order Prior to Delivery List and adding five new orthoses and two HCPCS codes to the Required Prior Authorization List. The changes go into effect April 13, 2026. Meet the Candidates: Rep. Ashley Hinson Visits VGM During U.S. Senate Campaign thumbnail Meet the Candidates: Rep. Ashley Hinson Visits VGM During U.S. Senate Campaign Waterloo, Iowa — On Wednesday, VGM Group welcomed employees, local DME suppliers, and community guests for the latest installment of its Meet the Candidates series. The featured guest was Rep. Ashley Hinson (R-IA), who currently represents Iowa's 2nd Congressional District and is now running for the U.S. Senate following Sen. Joni Ernst's decision not to seek reelection in 2026. Grassroots Accountability Program Wants YOU! Become a DMEPOS Advocate thumbnail Grassroots Accountability Program Wants YOU! Become a DMEPOS Advocate Are you interested in politics or curious about how government really works behind the scenes The Grassroots Accountability Program (GAP) is a great opportunity to expand your civic knowledge, build meaningful relationships with your state and federal legislators, and make a direct impact on the future of the DMEPOS industry. CMS Issues FAQ On DMEPOS Competitive Bidding Program thumbnail CMS Issues FAQ On DMEPOS Competitive Bidding Program The Centers for Medicare and Medicaid Services (CMS) has issued a DMEPOS CBP Frequently Asked Questions (FAQ) providing clarification on several points of the next round. Medicare Advantage Plans Are in Flux: What Providers Should Know thumbnail Medicare Advantage Plans Are in Flux: What Providers Should Know As reported by HME News WASHINGTON – Medicare Advantage (MA) plans will face new restrictions in 2026 that could force insurers to rethink their business models, according to payer relations experts. While these changes don't directly impact home medical equipment (HME) providers today, they could influence future plan design and reimbursement strategies. BOC Reinstated As Approved Accrediting Organization thumbnail BOC Reinstated As Approved Accrediting Organization As reported by HME News: Court grants company's motion for temporary restraining order against CMS OWINGS Mills, MD.—The Board of Certification/Accreditation (BOC) has been reinstated as an approved accrediting organization (AO) in all but four states, the company has announced. Click here to read the full article from HME News. The federal court has granted a temporary restraining order (“TRO”) in favor of BOC…thereby restoring BOC as an accrediting organization in all states except N