Several suppliers recently logged in to find substantial, though unexpected, deposits to their bank accounts. The deposits are from Optum Bank with a vague description “HHSPAYMENT.” These funds are part of the Provider Relief Fund included in the CARES Act. Providers that have not yet received their share should practice patience, not panic.
We contacted the CARES Provider Relief line operated by the UnitedHealth Group, and the associates we spoke to stated distributions from the fund will continue over the next two weeks. They hope to complete direct deposits by the first week of May … but this is $30 billion dollars that has to be doled out to hundreds of thousands of eligible providers across the country.
The provider relief deposit represents each supplier’s share of a $30 billion pot of money. Any supplier that received Medicare reimbursement in 2019 for covered services is eligible. Our back-of-the-napkin math suggests that Medicare is paying suppliers just over six cents for every dollar they paid for reimbursable services in 2019. For suppliers that want a rough estimate of the one-time payment for their company, multiply 2019 Medicare receipts by $0.06.
This is not a loan. So long as suppliers sign an attestation statement agreeing to the 10-page terms and conditions and then use the funds for intended purposes, suppliers do not need to repay the money.
Having said that …
It is foolhardy to think this money doesn’t come with responsibility. Before spending any of it, suppliers should read the terms and conditions carefully to be sure they can comply. Suppliers have 30 days from the date of the deposit to review the terms and conditions and upload an attestation statement. We recommend holding off on submitting the attestation until CMS clarifies some vague terms and spending restrictions in the current agreement.
We suggest suppliers segregate these funds in a separate bank account and internally request them for specific purposes. Doing so will prompt management to revisit the terms and conditions with each dollar spent to ensure accountability and avoid problems down the road. We expect CMS will perform audits and ask pointed questions about the use of funds during the crisis.
Additionally, any supplier that receives more than $150,000 in total aid from any relief program will have to issue quarterly reports on the use of those funds. Suppliers must prepare for this eventuality.
In summary, suppliers that have not yet received funds need not worry, and those that have should take care to understand the fine print related to their use.
SOURCE LINKS
https://www.hhs.gov/provider-relief/index.html
https://www.hhs.gov/sites/default/files/relief-fund-payment-terms-and-conditions-04132020.pdf
https://myservices.optumhealthpaymentservices.com/registrationSignIn.do
We contacted the CARES Provider Relief line operated by the UnitedHealth Group, and the associates we spoke to stated distributions from the fund will continue over the next two weeks. They hope to complete direct deposits by the first week of May … but this is $30 billion dollars that has to be doled out to hundreds of thousands of eligible providers across the country.
The provider relief deposit represents each supplier’s share of a $30 billion pot of money. Any supplier that received Medicare reimbursement in 2019 for covered services is eligible. Our back-of-the-napkin math suggests that Medicare is paying suppliers just over six cents for every dollar they paid for reimbursable services in 2019. For suppliers that want a rough estimate of the one-time payment for their company, multiply 2019 Medicare receipts by $0.06.
This is not a loan. So long as suppliers sign an attestation statement agreeing to the 10-page terms and conditions and then use the funds for intended purposes, suppliers do not need to repay the money.
Having said that …
It is foolhardy to think this money doesn’t come with responsibility. Before spending any of it, suppliers should read the terms and conditions carefully to be sure they can comply. Suppliers have 30 days from the date of the deposit to review the terms and conditions and upload an attestation statement. We recommend holding off on submitting the attestation until CMS clarifies some vague terms and spending restrictions in the current agreement.
We suggest suppliers segregate these funds in a separate bank account and internally request them for specific purposes. Doing so will prompt management to revisit the terms and conditions with each dollar spent to ensure accountability and avoid problems down the road. We expect CMS will perform audits and ask pointed questions about the use of funds during the crisis.
Additionally, any supplier that receives more than $150,000 in total aid from any relief program will have to issue quarterly reports on the use of those funds. Suppliers must prepare for this eventuality.
In summary, suppliers that have not yet received funds need not worry, and those that have should take care to understand the fine print related to their use.
SOURCE LINKS
https://www.hhs.gov/provider-relief/index.html
https://www.hhs.gov/sites/default/files/relief-fund-payment-terms-and-conditions-04132020.pdf
https://myservices.optumhealthpaymentservices.com/registrationSignIn.do
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