New Opportunity for HHS Reimbursement

On Friday, July 10, 2020, the U.S. Department of Health and Human Services announced new guidelines to the Medicaid Targeted Distribution portion of the CARES Act Provider Relief Fund to receive assistance to help with losses that have incurred during the dental industry closure as a result of the COVID pandemic.

We are continuing to receive guidance on this development, at this time we believe that dentists, even if they have not billed Medicare/Medicaid/CHIP programs may be eligible for this new funding provision. We are encouraging our dental practice clients to consider applying.

Eligible dentists will receive a reimbursement of two percent of their annual reported patient revenue and will have until July 24, 2020 to apply for funding through the CARES Act Provider Relief Fund Payment Attestation Portal.

These funds are neither a loan nor a grant, but a payment. It is unrelated to the Small Business Administration (SBA) loans such as the Economic Injury Disaster Loan (EIDL) or the Paycheck Protection Program (PPP) loans and you are not precluded from applying for this HHS payment if you previously received a SBA loan.

The American Dental Association has published a list of requirements. To be eligible to apply, a dental provider must meet all of the following:

  • Must not have received payment from the initial $50 billion Medicare-focused general distribution.
  • Must not have received payment from the $15 billion Medicaid and Children’s Health Insurance Program distribution.
  • Must have filed a federal income tax return for fiscal years 2017, 2018 or 2019 or 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 (for example, a state-owned hospital or health care clinic).
  • Must have provided patient dental care after Jan. 31.
  • Must not have permanently ceased providing patient dental care directly or indirectly through included subsidiaries. However, dental offices that shut down during the pandemic are eligible.
  • If the applicant is an individual, have gross receipts or sales from providing patient dental care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a statutory employee.

Dentists will be asked to provide HHS with requested information in the application and must also agree to the program Terms and Conditions. HHS has also provided a number of FAQs on the Provider Relief Fund. For help with the application process, HHS has also set up a Provider Support Line (866) 569-3522 to assist with questions.