The CMS Accelerated and Advance Payment (AAP) Program was designed to increase cash flow to Medicare providers and suppliers impacted by the 2019 Novel Coronavirus (COVID-19) pandemic. The payments are funded from the Hospital Insurance (Part A) and Supplementary Medical Insurance (Part B) trust funds, which are the same fund used to pay out Medicare claims each day.
The advance and accelerated payments are a loan that providers must pay back. It is important to note, this funding is separate from the $100 billion provided in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act appropriation is a payment that does not need to be repaid.