The COVID-19 pandemic has created financial strains for many health care providers due to the increased costs of treating patients with virus-related illnesses and decreased revenue from disruptions to the health care delivery system. Safety-net providers that serve a high share of Medicaid and uninsured patients are particularly vulnerable — prior to the pandemic they often had low operating margins and Medicaid patients have been disproportionately affected by COVID-19.
In March 2020, Congress created a provider relief fund intended to help cover expenses and lost revenue attributable to COVID-19 through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136). A month later, Congress increased the size of the provider relief fund to a combined total of $175 billion. Both Medicare- and Medicaid-enrolled providers are eligible to receive funds, but they have received relief funding at different times and through different processes.
This issue brief reviews the distribution of provider relief funds to Medicaid and State Children’s Health Insurance Program (CHIP) providers based on a review of applications submitted as of November 26, 2020. In addition, MACPAC interviewed Medicaid officials in five states and representatives from national provider organizations to learn more about the barriers experienced by Medicaid providers applying for provider relief funding. Overall, we find that many Medicaid and CHIP providers who are not enrolled in Medicare have not received any provider relief funds, which has particularly affected provider types that serve a high share of Medicaid patients, such as pediatric practices, home- and community-based services providers, and behavioral health providers.
