CMS Extends AAP Program Repayments

Providers that received payments from the Accelerated and Advance Payment program now have significantly longer to repay their loans.

• By David Kopf
• Oct 15, 2020

CMS has extended the repayment start for payments issued under the Accelerated and Advance Payment (AAP) program to one year. The original starting time for repayment was 210 days after payment.

The AAP loan program lets CMS make advance payments to providers during disasters and emergency situations and is normally not available to Part B services.

However, after HHS Secretary Alexander Azar declared the COVID-19 Public Health Emergency (PHE), CMS expanded the APP for Part B services on March 28 so that those providers could continue providing services at a crucial time.

“In the throes of an unprecedented pandemic, providers and suppliers on the frontlines needed a lifeline to help keep them afloat,” CMS Administrator Seema Verma said in a public statement. “CMS’ advanced payments were loans given to providers and suppliers to avoid having to close their doors and potentially causing a disruption in service for seniors.”

Since the March AAP expansion, CMS has paid more than 22,000 Part A providers, in payments totaling more than $98 billion, and more than 28,000 Part B suppliers — including doctors, non-physician practitioners, and DME suppliers — in payments totaling more than $8.5 billion.

Under the original 210 days term, providers who received payments in March were required to star repayment in August, but with this extension, repayment will be delayed until one year after payment was issued. At that point, Medicare will automatically recoup 25 percent of Medicare payments otherwise owed to the provider or supplier for 11 months. At the end of the 11-month period, recoupment will increase to 50 percent for another six months.

If the provider or supplier can’t repay the total amount of the AAP loan during this 29-month period, CMS will issue letters requiring repayment of any outstanding balance, subject to an interest rate of four percent.

To view the fact sheet, click here, and to view the frequently asked questions, click here.