In 2020, CMS expanded the Medicare Accelerated and Advance Payment Program (AAP) which made it available to most Medicare physicians. Due to COVID-19, the AAP Program provided loans to applicants facing financial hardships based on historic Medicare billing. Repayment of AAP loans begins one year from the date the payment was issued. This means repayment for some could begin in early April 2021.
A provider may repay their accelerated or advance payment at any time by contacting their Medicare Administrative Contractor (MAC).
If any balance remains (at the one-year mark from the issued date) as to an accelerated or advance payment, pursuant to the Continuing Appropriations Act, 2021 and Other Extensions Act, repayment terms are as follows:
- At the one-year mark from the issued date and continuing for 11 months, Medicare payments automatically reduced at a rate of 25%.
- After the 11 months end, Medicare payments automatically reduced at a rate of 50% for another 6 months.
- After the 6 months end, any remaining balance must be paid within 30 days or the balance will accrue interest at a rate of 4% until fully repaid.
Practices should direct any further questions to their MACs.
Read more at: https://www.cms.gov/newsroom/press-releases/cms-announces-new-repayment-terms-medicare-loans-made-providers-during-covid-19