Medicare Accelerated and Advance Payment Program (APP)

From: Drew Voytal
Associate Director
MGMA Government Affairs
Washington, DC

President Trump signed a continuing resolution appropriations bill into law that funds the federal government through December 11, 2020; section 2501 also includes several improvements to the Medicare Accelerated and Advance Payment Program (APP), including relaxing repayment terms. Upon request of a hospital or group practice that received accelerated or advance payments under Medicare Part A or Part B, CMS can:

  • Delay recoupment of payments until one year from the issuance of the advanced payments;
  • Once recoupment begins, apply a graduated recoupment schedule, where 25% of Medicare payments would be withheld during the first 11 months of recoupment, and 50% of Medicare payments would be withheld during the following six months; and
  • Extend the period during which recipients must fully repay the advance payment amount in full to 29 months from the date of the first payment.
  • The bill also lowers the interest rate on outstanding balances remaining after the 29-month repayment period from 10.25% to 4%.

CMS has not yet published information for groups wishing to avail themselves of these benefits, but we anticipate the agency will provide further information on how to make such a request. We will notify members once we see something.

Author: Seymore Bones

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