CARES Act Provider Relief Fund Payments Available for Assisted Living Facilities 

On September 2, 2020, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), invited assisted living facilities (ALFs), that may have been previously ineligible, to apply for funding under the Provider Relief Fund Phase 2 General Distribution allocation. Many ALFs have implemented CDC recommendations that have resulted in increased health care related costs to their facilities. As a result, HHS is encouraging ALFs to apply for funding to help minimize the financial hardships of these increased expenses caused by COVID-19. 

Like other providers applying for Phase 2 funding, eligible ALFs will receive 2 percent of their annual revenue from patient care. Helpful information for these providers can be found at the Provider Relief Fund website, which includes previously recorded Phase 2 application webinars, frequently asked questions (FAQs) and other information on how to apply through the recently simplified application process. Assisted living facilities, like all providers applying for the current Phase 2 General Distribution funding, will have until September 13, 2020 to begin their application by entering their Tax Identification Number (TIN) for validation. Please read the full announcement for more details.

Eligibility Requirements:

To be eligible to apply, the applicant must meet all of the following requirements:

1. Either
   1. The provider must have directly billed or own (on the application date) an included subsidiary that has billed their state Medicaid/CHIP programs or Medicaid managed care plans for health care-related services during the period of January 1, 2018, to December 31, 2019; or
   2. The provider must be a dental service provider who has either (i) directly billed health insurance companies for oral health care-related services, or (ii) owns (on the application date) an included subsidiary that has directly billed health insurance companies for oral health care-related services; or
   3. The provider must be a licensed dental service provider who does not accept insurance and has either (i) directly billed patients for oral health care-related services, or (ii) who owns (on the application date) an included subsidiary that does not accept insurance and has directly billed patients for oral health care-related services; 
   4. The provider must have billed Medicare fee-for-service during the period of January 1, 2019 and December 31, 2019; or
   5. The provider must be a Medicare Part A provider that experienced a change in ownership and billed Medicare fee-for-service in 2019 and 2020 that prevented the otherwise eligible provider from receiving a Phase 1 – General Distribution payment; or
   6. The provider must be a state-licensed/certified assisted living facility.
2. The provider must have either (i) filed a federal income tax return for fiscal years 2017, 2018 or 2019 or (ii) be an entity exempt from the requirement to file a federal income tax return and have no beneficial owner that is required to file a federal income tax return. (e.g. a state-owned hospital or health care clinic); and
3. The provider must have provided patient care after January 31, 2020; and
4. The provider must not have permanently ceased providing patient care directly, or indirectly through included subsidiaries; and
5. If the applicant is an individual, have gross receipts or sales from providing patient care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a (statutory) employee.

Providers who have received a payment under Phase 1 General Distribution are no longer prohibited from submitting an application under Phase 2 General Distribution. Providers who received a previous Phase 1 General Distribution payment are eligible to apply and, if they have not yet received a payment that is approximately 2% of annual revenue from patient care, may receive additional funds.

Before applying through the Enhanced Provider Relief Fund Payment Portal, applicants should:

• Read the Medicaid Provider Distribution Instructions – PDF
• Download the Medicaid Provider Distribution Application Form – PDF

In addition, DHS encourages Medicaid/CHIP providers to carefully review the Medicaid Relief Fund Payment Terms and Conditions with their attorneys and accountants on the appropriate use of and questions about CARES Act Provider Relief Funds.

More information about eligibility and the application process is also available on the HHS website.