Federal and State Emergency Response Funding Still Available

Posted on June 16, 2020 by Jeff Bostic

The COVID-19 emergency has had significant negative financial impacts on many providers, including loss of revenue as well as higher costs associated with responding to actual and potential outbreaks of the virus.  Fortunately, the state and federal governments have both responded with large programs of aid to providers, including the most recent development at the federal level - the Medicaid provider distribution from the CARES Act provider relief fund. 

Federal Relief Update

HHS has now posted a new portal for providers who participate in Medicaid but did not receive provider relief funding through the automatic distributions to Medicare providers. This new process will allow members who provide assisted living and/or adult day services to access federal relief funding that has been unavailable to them so far. The provider relief funding is intended to address the increased costs and lost revenue that providers have experienced due to COVID-19. Members should be aware that while these funds can be used to replace lost revenue, providers who have permanently closed as a result of the emergency are not eligible for funding. 

In addition to the new portal, HHS has also posted detailed instructions about applying for funding under the new process and a copy of the application.  HHS has established a deadline of July 20 for applying for funds through this process, but they have indicated that a total of $15 billion is available and that they will be making awards on a rolling basis, so members should apply as soon as they are able. The CARES Act provider relief fund web page also includes information about the previous payments to Medicare providers and the targeted payment to nursing facilities, including the terms and conditions of acceptance of the funds and a link to fill out the required attestation that funds will be used according to the terms and conditions.  Attestation must be made by 90 days after receipt of each payments. 

The federal government under the CARES Act has also been offering forgivable Paycheck Protection Program loans to qualified small businesses through local lenders.  Funding remains available for additional loans, so members who qualify and have not yet received a loan can still apply.  Under recently approved legislation, the timeline for using the funds was extended to six months and the portion that has to be used for payroll costs was reduced to 60%, making it easier to qualify for full loan forgiveness. 

State Relief Fund

In addition to this federal funding, the state has made relief funds available to Assisted Living providers in a couple of different ways. MDH still has $50 million available to award through their Health Care Response Grant program which has already funded over 300 Assisted Living providers to assist them with the cost of responding to COVID-19. 

Providers who applied previously but didn’t receive an MDH grant are still eligible and do not need to reapply. Members who have not applied or wish to resubmit with a different request are encouraged to review the RFP and then move quickly to complete and return the application for these grant funds.  MDH is conducting these awards without an official deadline but they are expected to award the final pot of money soon. Those Assisted Living providers who participate in Elderly Waiver and have COVID-19 exposure are also eligible for enhanced rates under a recent DHS bulletin so that is another potential funding source.