Medicare Accelerated/Advanced Payment Revisions
Last week, as part of the short-term spending bill passed by Congress, several changes were made to the Accelerated and Advanced Payment program. The changes relax many of the terms of repayment for physicians that took advantage of the program in March as the pandemic started shutting down practices.
The newly-passed flexibility includes:
- Delay recoupment of payments until one year from the issuance of the advanced payments.
- Once recoupment begins, 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.
- Extension of the period during which recipients must fully repay the advance payment amount in full to 29 months from the date of the first payment.
- Lower interest rate on outstanding balances remaining after the 29-month repayment period from 10.25% to 4%.
Over the next several weeks, CMS is expected to offer specific guidelines outlining the changes—as well as provide more details regarding how physician practices can notify their Medicare contractor to take advantage of the new flexibility.
OSMA will notify members with these specifics are released by CMS.
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