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Hospitals’ Compliance with the Provider Relief Fund Balance Billing Requirement for Out-of-Network Patients

Announced on  | Last Modified on  | Project Number: A-02-22-01018

OBJECTIVE

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, Paycheck Protection and Health Care Enhancement Act, and Consolidated Appropriations Act, 2021, appropriated a combined $178 billion in relief funds to hospitals and other health care providers. This funding, known as the Provider Relief Fund (PRF), is administered by the Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) and is intended to reimburse eligible health care providers for health care-related expenses or lost revenue attributable to COVID-19 and to ensure that Americans could get testing and treatment for COVID-19. Under the PRF terms and conditions, hospitals are eligible for PRF distribution payments if they attest to specific requirements, including a requirement that providers, such as hospitals, must not pursue the collection of out-of-pocket payments from presumptive or actual COVID-19 patients in excess of what the patients otherwise would have been required to pay if the care had been provided by in-network providers. We refer to this limitation on balance billing, commonly referred to as "surprise billing," as the "balance billing requirement." We will perform a nationwide audit to determine whether hospitals that received PRF payments and attested to the associated terms and conditions complied with the balance billing requirement for COVID‑19 inpatients. We will assess how bills were calculated for out-of-network patients admitted for COVID-19 treatment, review supporting documentation for compliance, and assess procedural controls and monitoring to ensure compliance with the balance billing requirement.

TIMELINE

  • July 15, 2022
    Announced
  • September 19, 2025
    Complete

    Hospitals’ Compliance with the Provider Relief Fund Balance Billing Requirement for Out-of-Network Patients has been marked as complete. This audit resulted in 2 recommendations.

REPORT PUBLISHED

25-A-02-121.01 to HRSA - Open Unimplemented
Update expected on 06/08/2026
We recommend that the Health Resources and Services Administration determine whether the selected hospitals made refunds to the patients identified in this audit for billings that did not or may not have complied with the PRF balance billing requirement.

25-A-02-121.02 to HRSA - Closed Implemented
Closed on 12/08/2025
We recommend that the Health Resources and Services Administration as part of its established and ongoing program integrity procedures, perform postpayment reviews of hospitals for compliance with the balance billing requirement, including the hospitals we identified that may not have complied, to ensure that patients were not billed more than their in-network amount and were refunded any improper billed amounts.

View in Recommendation Tracker

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