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CMS Announcement: New Repayment Terms for COVID-19 Medicare Loans

From CMS' press release  on October 8, 2020 there are amended terms for repayment on Accelerated and Advance Payment (AAP) Program. This allows CMS to make advance payments to providers and are typically used in emergencies. 

Repayment from providers were supposed to start in August of this year, however now repayment will be delayed until one year after the payment was issued. 

  •  After that first year, Medicare will automatically recoup 25 percent of Medicare payments otherwise owed to the provider or supplier for eleven months. 
  • 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 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 four percent.

For frequently asked questions click here.

For a fact sheet on repayment terms, click here.  

Tags: CMS, CMS Update 2020, COVID-19