Did your facility apply for and receive Medicare Advanced Payments in March or April, 2020?
If you answered “YES”, your Medicare Remittance advices will begin to show the recoupments one year from the date the advance payment was made.
Example:
The Medicare Accelerated and Advanced Payment (AAP) program began on March 28, 2020. The program allowed for advance payments to Providers as loans to assist with the undue hardship of the Public Health Emergency and COVID-19.
Repayment was originally scheduled to begin in August, 2020 but amendments to the AAP were made under the Continuing Appropriations Act, 2021 and Other Extensions Act. Repayment will now begin one year from the issuance date of each provider or supplier’s accelerated or advance payment.
- After the first year, Medicare will being to automatically recoup 25 percent of payments owed to the provider or supplier for eleven months
- At the end of the eleven-month period, recoupment will increase to 50 percent for an additional six months
- If the Provider is unable to repay the total amount of the AAP over this 29 months, CMS will issue a letter requiring repayment of outstanding balances, subject to 4% interest
This letter will also include information on requesting an Extended Repayment Schedule (ERS) for Providers experiencing financial difficulties. The ERS allows for repayment over three years, and up to five, in some situations. Providers should contact their Medicare Administrative Contractor (MAC) for more information.
If a Provider has already repaid the payment in full, the terms above do not apply.
More information is available through this CMS fact sheet.
