CMS Starts Recouping Accelerated, Advance Medicare Payments

Providers who accept the payments, however, do have to repay CMS, and the agency can hold back future Medicare reimbursements to the provider until the upfront payments are recouped.

These providers were originally scheduled to start repayment of the Medicare payments made in advance during the COVID-19 pandemic in August 2020.

But CMS and lawmakers through the Continuing Appropriations Act, 2021 and Other Extensions Act (P.L. 116-159) extended original repayment timelines in light of the ongoing struggles stemming from the pandemic.

During the recoupment period, CMS will hold back a portion of new Medicare claims from providers—25 percent during the first 11 months of recoupment and 50 percent during the six months—until the payments advanced last year are recouped.

Providers are required to have paid back the advanced payments in full 20 months after they received the first payment. If they fail to do so, CMS will charge interest of four percent on the remaining balance.

The recoupment terms are more favorable to providers thanks to the Continuing Appropriations Act, 2021 and Other Extensions Act and other legislation. Usually, providers have a shorter time until recoupment and CMS would hold back full future Medicare reimbursements until the loan was paid off.

Source: https://revcycleintelligence.com/news/cms-starts-recouping-accelerated-advance-medicare-payments