CMS Gives Notice that AAP Repayment Began on March 30

On April 1, 2021, the Centers for Medicare and Medicaid Services (CMS) provided notice that repayment of Accelerated and Advanced Payments began on March 30, 2021. As part of its COVID-19 relief efforts and authorized through the Coronavirus Aid, Relief, and Economic Security Act, the COVID-19 Accelerated and Advance Payments Program provided advanced payments to a broader group of Part A and B providers than the original Accelerated and Advanced Payments Program. 

Repayment of these funds will begin no sooner than one year from the issuance date of each provider or supplier’s accelerated or advance payment. The agency has outlined the following repayment timeline:

• Months 1-12: No repayment

• Months 13-23: Medicare will automatically recoup 25 percent of Medicare payments otherwise owed to the provider or supplier for eleven months.  

• Months 24-29: At the end of the eleven-month period, recoupment will increase to 50 percent for another six months.  

If the provider or supplier is unable to repay the total amount of the accelerated or advance payment during this time-period, CMS will issue demand letters requiring repayment of any outstanding balance, subject to an interest rate of four percent (as indicated in the Continuing Appropriations Act, 2021).

More information is available on the COVID-19 Accelerated and Advance Payments webpage. CMS has also released an MLN Matters Article (PDF) on this topic.