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Medicare COVID-19 Advance Payments *Update

Medicare COVID-19 Accelerated/Advance Payment (AAP) Repayment FAQ

CMS created the following FAQ document in the link below to help providers understand the process and options of repaying Medicare accelerated/advance payments (AAPs) issued for COVID-19.

We strongly encourage Medicare providers to thoroughly review the link here:

Here are some key questions and answers we wanted to highlight:

  • 6. Question: How will offset amounts appear on my Medicare Remittance Advice?
  • Answer: Part B Providers – Any amount offset and applied to the refund of the advanced payment will appear on the last page of the Remittance Advice with WO indicating the amount withheld with a CVDXXX reference number.
  • 9. Question: Will my entire Medicare payment be taken in offset?
  • Answer: Yes. Once offset begins, all future payments will be offset until the AAP amount has been refunded. Recoupment of payments can also be made from “affiliated providers.” An affiliated provider is a provider that shares the same Tax Identification Number (TIN) and/or is noted as part of a Hospital Group (i.e., sub-units). On the Electronic Remittance Advice (ERA), a code of “OA” is used for Part A Affiliated Withholdings and a code of “OB” is used for Part B Affiliated Withholdings. The affiliated withholding amount is reported in the total withhold of the payment recap section on the Standard Paper Remittance (SPR).
  • 11. Question: Should I hold my claims once offset begins so that my Medicare payments are not offset?
  • Answer: Palmetto GBA does not recommend providers take this action as interest will be accruing on any overpayment balance 30 days following the issuance of the overpayment demand letter