CMS Announces New Repayment Terms for Medicare Loans Made to Providers During COVID-19

CMS Announces New Repayment Terms for Medicare Loans Made to Providers During COVID-19

CMS announced a one-year grace period for repayment of loans/advance payments received by providers.  Now, payments are to begin one year from the issuance date of each provider or supplier’s accelerated or advance payment.  The amended terms for payments issued under the Accelerated and Advance Payment (AAP) Program was passed by Congress and signed into law by the President as part of the Continuing Resolution.  The Medicare loan program had allowed CMS to make advance payments to providers and is typically used in emergency situations.  Under the Continuing Appropriations Act, 2021 and Other Extensions Act repayment will now begin one year from the issuance date of each provider or supplier’s accelerated or advance payment.

CMS issued $106 billion in payments to providers and suppliers in order to alleviate the financial burden healthcare providers faced while experiencing cash flow issues in the early stages of combating the COVID-19 Public Health Emergency (PHE). For more information, CMS released a Fact Sheet and FAQs related to the Accelerated and Advance Payment Repayment and Recovery terms.

 

Questions?

Contact:

David Carter | Director, Health Care Finance & Policy

C 360.888.5702

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