While you're waiting for your piece of the $100 billion emergency fund that's part of the COVID-19 stimulus bill, you may want to consider an expanded advanced payment plan offered by CMS, as well as loans offered by the Small Business Administration (SBA).
The terms of that $100 billion, embedded in the Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress and signed by President Trump on March 27, include sequestration relief and other measures. Yet while the CARES Act unfolds, some observers are advising that practices document their COVID-19 losses in preparation for additional relief.
On March 28, CMS issued the release, "Trump Administration Provides Financial Relief for Medicare Providers," laying out the means by which you may be able to receive "accelerated and advance Medicare payments." The expanded Accelerated and Advanced Payment Program (APP) provides emergency funding and "addresses cash flow issues based on historical payments when there is disruption in claims submission and/or claims processing."
It appears that if your practice is shuttered or experiencing a slowdown under the COVID-19 health emergency or your receipts are under duress, you can be considered for these advanced, lump-sum payments. To be eligible, Medicare providers and suppliers must:
- Have billed Medicare for claims within 180 days immediately prior to the date of signature on the provider's or supplier’s request form.
- Not be in bankruptcy.
- Not be under active medical review or program integrity investigation.
- Not have any outstanding delinquent Medicare overpayments.
A related fact sheet further explains that "most providers and suppliers will be able to request up to 100% of the Medicare payment amount for a three-month period," and that these providers will have to start paying the money back 120 days, or roughly four months, after the date of payment.
Providers are directed to contact their MAC for more details and to sign up. Palmetto and CGS have already set up pages for their providers.
Meanwhile those providers whose entities qualify as small businesses -- as do most businesses with fewer than 500 employees, and some with more -- may apply for a COVID-19 Economic Injury Disaster Loan from the SBA. The SBA says its loan program "provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing."
You can read about other SBA loan programs for which you may be eligible here: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources.