In March, the Centers for Medicare and Medicaid Services expanded the Accelerated and Advance Payments Program (AAP) due to the COVID-19 Public Health Emergency in an effort to increase cash flow to providers. Under current terms , repayment for these funds begins 120 days after issuance. Members are advised that if they received APP funds, repayments are about to come due.

In the recoupment process, every claim submitted will be offset from the new claims to repay the accelerated payments. The outstanding accelerated payment balance is reduced by the claim payment amount, and this process is automatic. Most Part A and B providers will have to pay back the funds in 210 days, with the exception of inpatient acute care, children’s, cancer and critical access hospitals, which will have one year after issuance. After 210 days, Medicare Administrative Contractors will send a request for repayment of the remaining balance, which will be collected by direct payment. Furthermore, after 210 days, there is a 10.25% interest rate in paying back these loans.

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