Last Modified: 5/1/2022
Location: FL, PR, USVI
Business: Part A, Part B
Under the expanded Accelerated and Advance Payments (AAP) Program, CMS issued payments to providers and suppliers to help ease financial strain due to a disruption in claims submission and/or claims processing related to the COVID-19 public health emergency.
Recently, Congress enacted amended repayment terms for the accelerated and advance payments through the Continuing Appropriations Act, 2021 and Other Extensions Act:
• Repayment will now begin one year after the date of the issuance of the payment.
• During the first 11 months after repayment begins, repayment will occur through an automatic recoupment of 25% of Medicare payments otherwise owed to you.
• During the succeeding six months, repayment will occur through an automatic recoupment of 50% of Medicare payments otherwise owed to you.
• If you are unable to repay the total amount of the accelerated or advance payment through recoupment within 29 months, you will receive a demand letter requiring repayment of any outstanding balance, subject to an interest rate of 4%.
No action is necessary from you. The repayment process will begin automatically.
The following example helps illustrate the amended repayment terms for a provider that was issued an AAP on April 1, 2020:
We highly recommend that providers/suppliers create a way, during the 29-month recoupment period, to track the claims submitted, Medicare reimbursement received, and Medicare reimbursements recouped:
• This will help you reconcile the payments recouped towards your AAP receivable in your system as they are a part of the payback process.
• To assist you with your reconciliation, recoupment transactions related to the AAP will process with a coded adjustment that is assigned a "CVD" Accounts Receivable (AR) number.
Have additional questions?
If you have any additional questions regarding the AAP repayment process, please contact our hotline at 1-855-247-8428. Our hours of operation are 8:30 a.m.–4 p.m. ET M-F.
Review CMS resources:
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