HomeLatest NewsCovid-19New Repayment Terms for Medicare Accelerated and Advance Payments

New Repayment Terms for Medicare Accelerated and Advance Payments

​The Centers for Medicare and Medicaid Services (CMS) expanded the existing Accelerated and Advance Payments Program to Medicare Part A providers and Part B suppliers due to the COVID-19 emergency in March 2020. An accelerated or advance payment is a payment intended to provide necessary funds when there is a disruption in claims submission and/or claims processing. CMS can also offer these payments in circumstances such as national emergencies, or natural disasters in order to accelerate cash flow to the impacted health care providers.

Original terms for repayment were set through the CARES Act. The Continuing Appropriations Act, 2020 and Other Extensions Act enacted on October 1, 2020 revised the payment terms for all providers who received  accelerated and advance payment(s) during the COVID-19 Public Health Emergency (PHE).

The new repayment terms are:

  • Repayment begins one year from the date the accelerated or advance payment was issued.
  • Beginning one year from the date the payment was issued and continuing for eleven (11) months, Medicare payments owed to providers and suppliers will be recouped at a rate of 25% from submitted claims.
  • After the eleven (11) months end, Medicare payments owed to providers and suppliers will be recouped at a rate of 50% from submitted claims for another six (6) months.
  • After the six (6) months end, a letter for any remaining balance of the accelerated or advance payment(s) will be issued.
  • If a letter requiring reimbursement is issued, providers will have 30 days from the date of the letter to repay the balance in full. If payment is not received within 30 days, interest will accrue at the rate of 4% from the date the letter was issued, and will be assessed for each full 30-day period that the balance remains unpaid.
Providers may repay their accelerated or advance payment at any time by contacting their Medicare Administrative Contractor (MAC). If the accelerated or advance payment is repaid in full, the repayment terms do not apply.
COVID-19 Provider Relief Funds (PRF) may not be used to repay advanced and accelerated payments. CMS incorrectly stated in their first press release that PRF funds could be used to repay Medicare loans. The CMS Press Release has since been updated to reflect the correction.

Stay Connected

Unified Voice Newsletter

Events This Month

march

20marAll DaySpring Tobacco Control InstituteDOH Event

20mar1:00 pm2:00 pmPrehospital Trauma PrioritiesDenver Health Trauma Webinar

20mar1:30 pm2:30 pmWeek-By-Week Action Plan for Year-Round Survey Readiness (LTC Survey series)SDAHO Webinar

20mar12:00 pm12:45 pmUnite Against Sepsis: Collaborating to Reduce Sepsis Mortality and Improve Care CoordinationTelligen QI Connect

21marAll Day22SDHFMA Spring SymposiumHFMA event


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact