On October 8, the Centers for Medicare & Medicaid Services (CMS) released new details on repayment terms for the Medicare Accelerated and Advance Payments Program, a loan program that sent aid to Medicare Part A providers and certain Part B suppliers to help the ease the financial burdens caused by the COVID-19 pandemic. CMS also issued a Fact Sheet on the new terms.
CMS made more than $100 billion in loans to doctors, other medical providers, and durable medical equipment suppliers until the program was suspended on April 26. The initial term of the loans required repayment in August but, after significant pushback from hospital groups, the repayment deadline was delayed until one year after the issuance of each loan.
After the one-year period ends, Medicare will automatically recoup 25% of future Medicare payments given to a provider or supplier for the next 11 months. Following this, the recoupment will increase to 50% for six months. If a recipient is unable to repay the total amount during this 29-month period, CMS will issue a letter calling for the repayment of any outstanding balance with an interest rate of 4%. This letter will also provide guidance on how to request an extended repayment schedule over 3-5 years.
This post was written by Joseph P. DiBella, a law school graduate who is not yet admitted to the New York State Bar.