Many of you are probably seeing some surprise deposits in your business accounts today.
As part of the CARES Act President Trump signed into law on March 27th, $100 billion was allocated for the purpose of giving COVID-19 patients access to healthcare. $30 billion is being transferred immediately into medical practice accounts.
These deposits are being made to providers and facilities that received Medicare fee-for-service reimbursements during 2019.
As these funds are intended to help cover healthcare costs of affected patients, we believe they will be considered taxable reimbursements for purposes of 2020 income taxes.
There aren’t many strings attached to the money. A provider only needs to acknowledge receipt of the funds and agree not to seek collection of out-of-pocket payments from a COVID-19 patient that are greater than what the patient would have otherwise been required to pay if the care had been provided by an in-network provider.
The Department of Health and Human Services has set up a helpful site here: https://www.hhs.gov/provider-relief/index.html
Please don’t hesitate to reach out to one of our team members if you have any questions.