Note: This is an update to our April 13 alert here.
CARES Act 2.0, signed into law on April 24, 2020, authorized additional funding of certain programs established in the initial CARES Act, including supplemental funding for health care providers.
- The Health Care Provider Relief Fund, intended to provide reimbursement to health care providers and hospitals negatively impacted by their COVID-19 response efforts, received an additional $75 billion to the Fund beyond the initial $100 million allocated in the CARES Act.
- The funding methodology and terms and conditions for receiving the funds were not changed in the new law.
- Administered by the U.S. Department of Health and Human Services, the program began disbursing funds to eligible providers beginning in early April. More information on the program and the terms and conditions for acceptance of the program’s funds can be found here.
- CARES Act 2.0 further commits $25 billion to expand health sciences research, development, and capacity for COVID-19 testing.
The new law also provides more than $300 billion in additional funding for the Paycheck Protection Program, providing forgivable loans to small businesses as well as additional funding for the Economic Injury Disaster Loan program for small businesses.
As the federal health care reform effort gained steam, Ballard Spahr attorneys established the Health Care Reform Initiative to monitor and analyze legislative developments. With federal health care reform now a reality, our attorneys are assisting health care entities and employers in understanding the relevant changes and planning for the future.