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for services that mitigate or prevent COVID-19 spread. As such, a small business, nonprofit, or <br />impacted industry receiving assistance to implement COVID-19 mitigation measures is a <br />beneficiary of assistance (e.g., granting funds to a small business to develop an outdoor patio to <br />reduce transmission). In contrast, if a recipient contracts with, or grants funds to, a small <br />business, nonprofit, or impacted industry to carry out an eligible use for COVID-19 mitigation <br />on behalf of the recipient, the entity is a subrecipient (e.g., contracting with a small business to <br />operate COVID-19 vaccination sites). For further information on distinguishing between <br />beneficiaries and subrecipients, as well as the impacts of the distinction on reporting and other <br />requirements, see section Distinguishing Subrecipients versus Beneficiaries. <br />b. MEDICAL EXPENSES <br />Background: The interim final rule also included as an enumerated eligible use medical <br />expenses, including medical care and services to address the near -term and potential longer -term <br />impacts of the disease on individuals infected. <br />Public Comment: Some commenters sought clarification on the types of medical <br />expenses eligible and for whom, including whether funds could be used under this category for <br />expanding health insurance coverage (e.g., subsidies for premiums, expanding a group health <br />plan), improvements to healthcare facilities or establishment of new medical facilities, direct <br />costs of medical services, and costs to a self -funded health insurance plan (e.g., a county <br />government health plan) for COVID-19 medical care. <br />Treasury Response: In the final rule, Treasury is maintaining this enumerated eligible use <br />category and clarifying that it covers costs related to medical care provided directly to an <br />individual due to COVID-19 infection (e.g., treatment) or a potential infection (e.g., testing). <br />65 <br />