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.