June 24, 2020, update: HHS has pushed back the application deadline for the Medicaid Targeted Distribution to July 20, 2020.

On Wednesday, June 10, 2020, the U.S. Department of Health and Human Services (HHS) opened a new “Medicaid Targeted Distribution” portal through which Medicaid-dependent physicians can apply to receive a portion of the $15 billion “targeted distribution” for Medicaid providers.  Physicians must apply for the funding before July 20, 2020. The funding does not need to be repaid.

This funding will supply relief to Medicaid and Children’s Health Insurance program (CHIP) providers experiencing lost revenues or increased expenses due to COVID-19. This round of targeted funding will only be available to those physicians who have not previously received money from the HHS Provider Relief fund general distribution

According to HHS, the first two HHS Provider Relief fund general distributions provided payments to approximately 62% of all providers participating in state Medicaid and CHIP programs. The new targeted Medicaid and CHIP distribution will provide relief funds to the remaining 38%. The HHS Provider Relief fund $50 billion general distribution is composed of the $30 billion that was automatically distributed to largely Medicare physicians in mid-April and the second $20 billion that will be distributed to physicians soon.  

The updated Provider Relief Fund Payment Portal that allows eligible Medicaid and CHIP providers to apply for funding which includes reporting their annual patient revenue, which will be used as a factor in determining their Provider Relief Fund payment. The payment to each provider will be at least 2% of reported gross revenue from patient care (from all payors). The final amount each provider receives will be determined after the data is submitted, including information about the number of Medicaid patients they serve.

To be eligible for this funding, health care providers must not have received payments from the $50 billion Provider Relief Fund general distribution and either have directly billed their state Medicaid/CHIP fee-for-service programs or Medicaid managed care plans for health care services between January 1, 2018, to May 31, 2020. 

For more information, see CMA's fact sheet.