Repayment timeline extended for Accelerated and Advance Payment program
CMS extended the timeline for organizations to repay payments received under its Accelerated and Advance Payment program, according to a fact sheet released October 8.
According to CMS’ fact sheet on the updates, repayment begins one year from the date the accelerated or advance payment was issued. After that, Medicare payments to organizations that participated in the program will be recouped on the following schedule:
- At a rate of 25% beginning at one year from the date the payment was issued and continuing for 11 months
- At a rate of 50% for another six months after the 11-month period ends
- A letter for any remaining balance will be issued after the six-month period ends
Organizations may begin repayment at any time. If organizations fully repay prior to one year from the date the payment was issued, the above terms above will not apply. Organizations may contact their Medicare Administrative Contractor to begin repayment.
In March, CMS expanded its existing Accelerated and Advance Payment program in response to the novel coronavirus (COVID-19) public health emergency (PHE). The CARES Act further amended the program to create repayment flexibilities and provide additional benefits to specific types of organizations, including inpatient, critical access, and children’s hospitals. The flexibilities, including extended repayment timelines, created in accordance with the CARES Act applied only to those specific types of organizations referenced in the act.
On October 1, the Continuing Appropriations Act, 2021 and Other Extensions Act amended the terms for all providers and suppliers who received accelerated and advanced payments during the COVID-19 PHE.