On Tuesday, September 30th, the Senate approved the Continuing Appropriations Act, 2021 and Other Extensions Act.
Included in this bill was the following applicable to Medicare Accelerated and Advance Payment (AAP) Program:
- Allows providers to:
- Extend repayment for a full year before recoupment would begin
- Limit claim offsets to 25 percent of the full Medicare payment for 11 months
- Followed by 6 months with claim offsets limited to 50 percent of the full payment amount
- Effectively giving providers 29 months to repay the Advanced payment amount in full
- Reduces the interest rate from 10 percent to 4 percent IF the full amount is repaid between the CARES Act and the end of the COVID – 19 PHE
This bill was passed signed by the President and passed into law on October 1, 2020.
Paying Back Advance Payments Prior to Offset
Providers will be able to repay as one lump sum and the process will vary based on the Provider’s Medicare Fiscal Intermediary (FI).
As of now we do not see that Providers would incur any Prepayment Penalties.
Please reach out to a member of our COVID response team to learn how we can assist with tracking receipt of Medicare Advance Payments and Provider Repayments.