Skip to main content

Did you take advantage of the U.S. Center for Medicare & Medicaid Service's COVID-19 Accelerated & Advance Payment program? CMS says it's time to begin settling up.

The agency recently announced that the 12-month delay on recoupment for money issued through the CAAP is drawing to a close. Beginning at one year from the date the payment was issued,  providers and suppliers who opted for the program can expect a 25% "recoupment" — essentially a 25% reduction in payments owed from Medicare for 11 months, followed by a 50% recoupment for the next six months, if any money is still owed.

The CAAP program was expanded in late March 2020, in order to offer loans to qualified providers affected by the COVID-19 pandemic. By late April, CMS began suspending elements of the program in light of money disbursed through the CARES Act Provider Relief Fund. 

CMS also outlined how it will approach money still owed after the 17-month recoupment phase: After issuing a demand letter, CMS will consider the remaining balance an overpayment and be subject to a 4% interest rate "along with all normal recovery activities." Providers experiencing financial hardship may be able to qualify for an extended repayment schedule.

More information on the recoupment process is available on the CMS CAAP frequently asked questions webpage and via this CMS fact sheet on repayment terms. Questions can be directed to your Medicare Administrative Contractor.


You Might Also Like...

Roundup

Coronavirus Update: April 21

Apr 21, 2021

New developments in pediatric COVID-19, physical inactivity and severe symptoms, and more.

Review

Proposed FY '22 IRF Rule: 2.2% Increase; Call for Input on Equity, Reporting

Apr 13, 2021

As the U.S. health care system continues to struggle with a pandemic and its fallout, CMS keeps IRF payment changes relatively minimal.

Roundup

Coronavirus Update: April 7

Apr 7, 2021

APTA call for more attention to PASC, new travel guidance from the CDC, increasing COVID-19 rates among children, and more.