Final Analysis: COVID-19 Government Stimulus Packages

Published in Member Communities on October 19, 2021

Craig Douglas and Mark HigleyBy Mark Higley, VP of Regulatory Affairs and Craig Douglas, VP of Payer and Member Relations

Healthcare providers were presented with several economic stimulus programs to relieve some of the burdens brought on by the COVID-19 public health emergency (PHE). During a recent presentation, VGM’s Mark Higley, VP of Regulatory Affairs, and Craig Douglas, VP of Payer & Member Relations, have summarized these programs, what is required of providers to stay compliant, and the tax implications surrounding these programs. Watch their webinar recording or read the full article.

HHS Provider Relief Fund (PRF) and Updated Reporting Requirements 

Providers did not need to apply for this program to receive funds. Providers who received over $10,000 in funds must adhere to the reporting periods based on payment timeframes: 

Period 1:  

  • Funds received April 10-June 30, 2020  
  • Funds must be used up by June 30, 2021 
  • Reporting portal opened July 1, 2021 
  • Complete report by September 30, 2021 

Period 2:  

  • Received funds July 1-December 31, 2020 
  • Funds must be used up by December 31, 2021 
  • Reporting portal will open January 1, 2022 
  • Complete report by March 31, 2022 

Period 3:  

  • Funds received January 1-June 30, 2021 
  • Funds must be used up by June 30, 2022 
  • Reporting portal will open July 1, 2022 
  • Complete report by September 30, 2022  

Period 4:  

  • Funds received July 1-December 31, 2021 
  • Funds must be used up by December 31, 2022 
  • Reporting portal will open January 1, 2023 
  • Complete report by March 31, 2023 

Remember that PRF funds must be used to prevent, prepare for, and respond to coronavirus, and all expenses need to be supported by adequate documentation. Tax-wise, the payments received from the PRF are included in gross income for for-profit providers. Provider relief funds monies received are taxable unless the entity is not for profit.

Medicare Advanced Payments

The COVID-19 Accelerated or Advance Payment (CAAP) program was created as a result of the PHE, and providers had to apply to receive these funds. 

Repayment Requirements:

  • Repayment begins one year from the payment issue date and continuing for 11 months, Medicare payments owed to providers will be recouped at 25%.
  • After the 11 months end, Medicare payments owed to providers will be recouped at a rate of 50% for six months. 
  • After the six months end, a letter for any remaining balance of the payment(s) will be issued. If a provider doesn't satisfy that within 30 days, 4% interest begins to accrue.

To access the full article and webinar, log in to your member portal.


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