On March 27, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act, into law. The stimulus package includes over $2 trillion in spending and tax relief to assist the American public and healthcare providers responding to the COVID-19 pandemic. Link
The CARES Act provides direct support for healthcare providers and organizations in several ways including:
•Expanding Medicare Telehealth Flexibilities (Section 3703)
•Enabling Physician Assistants and Nurse Practitioners to order medical home health services (Section 3708)
•Increased provider funding through immediate sequestration relief (Section 3709)
•Expanded list of over-the-counter medical product that can be purchased using HSAs and Flexible Spending Accounts (Section 3702)
•Access to Medicare Advance and Accelerated Payments for Physicians (Section 3719)
•Increased reimbursement for hospitals treating COVID-19 patients (Section 3710)
•Allow 3-Month fills and refills of covered Medicare Part D drugs (Section 3714)
The CARES Act also provides relief for small businesses through:
•Paycheck Protection Program supporting loans and grants (Section 1102) Link
•Delayed payment of employer payroll taxes (Section 2302)
Paycheck Protection Program supporting loans and grants (Section 1102) Link
What’s In It for Businesses?
•All businesses, regardless of size, are eligible for a 50% refundable payroll tax credit
•The credit is applied toward the first $10,000 of an employee’s wages
•The business must demonstrate a 50% reduction in receipts compared to the same quarter in 2019
•Employers’ portion of the Social Security payroll tax can be delayed until Jan. 1, 2021
Small Businesses
•The $350 billion Paycheck Protection Program lends up to $10 million to small businesses with fewer than 500 employees. The loan amount is tied to payroll costs. It covers employees making up to $100,000 a year.
•The loan program is for payroll and other expenses between Feb. 15 and June 30, 2020. Loans may be forgiven if used for payroll, mortgage interest payments, rent, and utilities.
•Contact the Small Business Administration, which also has other loan programs and resources to help small businesses through the pandemic.
•Paycheck Protection Program FAQs: Link
Access to Medicare Advance and Accelerated Payments for Physicians (Section 3719)
What are accelerated/advance payments?
As of April 26, 2020 - CMS Reevaluates Accelerated Payment Program and Suspends Advance Payment Program
An accelerated/advance payment is a payment intended to provide necessary funds when there is a disruption in claims submission and/or claims processing. These expedited payments can also be offered in circumstances such as national emergencies, or natural disasters in order to accelerate cash flow to the impacted healthcare providers.
Is my practice eligible for accelerated/advance payments?
Providers must:
•Have billed Medicare for claims within 180 days immediately prior to the date of signature on the provider’s/supplier’s request form,
•Not be in bankruptcy,
•Not be under active medical review or program integrity investigation, and
•Not have any outstanding delinquent Medicare overpayments.
How much am I eligible to receive?
Qualified providers will be asked to request a specific amount using an Accelerated or Advance Payment Request form provided on each MAC’s website (Novitas). Most providers will be able to request up to 100% of the Medicare payment amount for a three-month period.
How does the recoupment or repayment work?
The provider can continue to submit claims as usual after the issuance of the accelerated or advance payment; however, recoupment will not begin for 120 days. Providers will receive full payments for their claims during the 120-day delay period. At the end of the 120-day period, the recoupment process will begin and every claim submitted by the provider will be offset from the new claims to repay the accelerated/advanced payment.
Where can my practice apply?
Texas based providers should apply through Novitas. Link
