October 14, 2020
CMS Announces New Repayment Terms for Medicare Loans Made to Providers During COVID-19
Last week, the Centers for Medicare and Medicaid Services (CMS) announced amended terms for payments issued under the Accelerated and Advance Payment (AAP) Program. Under the recently passed government funding legislation, repayment for the the Medicare loan program that allows CMS to make advance payments to providers will now begin one year from the issuance date of each provider’s payment.
Previously, providers were required to make payments starting in August of this year, but with this action, repayment will be delayed until one year after payment was issued. After that first year, Medicare will automatically recoup 25% of Medicare payments otherwise owed to the provider or supplier for 11 months. At the end of the 11-month period, recoupment will increase to 50% for another 6 months. If the provider is unable to repay the total amount of the AAP during this time-period (a total of 29 months), CMS will issue letters requiring repayment of any outstanding balance, subject to an interest rate of 4%.
Read a full fact sheet about the new repayment terms.
See CMS’s responses to Frequently Asked Questions about the AAP program
Find ASA's full compilation of economic resources for practices impacted by COVID-19.