COVID-19 Accelerated and Advance Payments

COVID-19 Accelerated and Advance Payments

CMS has begun the process of recovering payments made through the COVID-19 Accelerated and Advance Payments (CAAP) program.  Recovery for each facility that accepted payments through this program will begin 1 year after you received your first payment.

  • Beginning 1 year from the date we issued the CAAP and continuing for 11 months, we’ll recover the CAAP from Medicare payments due to providers and suppliers at a rate of 25%. 
  • After the end of this 11-month period, we’ll continue to recover remaining CAAP from Medicare payments due to providers and suppliers at a rate of 50% for 6 months. 
  • After the end of the 6-month period, your Medicare Administrative Contractor (MAC) will issue you a demand letter for full repayment of any remaining balance of the CAAP. If we don’t receive payment within 30 days, interest will accrue at the rate of 4% from the date your MAC issues you the demand letter. After that, we’ll assess interest for each full 30-day period that you fail to repay the balance. 

If you received an accelerated or advance payment, CMS will begin to recoup any outstanding balance from any payments due to you from your Medicare claims. This began as soon as March 30, 2021, depending upon the 1-year anniversary of when you received your first payment. 

CMS will show the recoupment on the remittance advices issued for Medicare Part A and B claims we process after the 1-year anniversary of issuing the first payment. The recoupment will appear as an adjustment in the Provider-Level Balance (PLB) section of the remittance advice. 

For more information, please check the CMS article here.

 

Questions?

Contact:

David Carter | Director, Health Care Finance & Policy

c: 360.888.5702

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April 5, 2021