CMS Begins Recouping Accelerated Medicare Payments

Payments will be recouped at a rate of 50% for six months after the initial 11-month period.

A version of this article was first published April 7, 2021, by HCPro's Revenue Cycle Advisor, a sibling publication to HealthLeaders.

CMS has begun recovering COVID-19 Accelerated and Advance Payments (CAAP), according to MLN Matters SE21004.

The agency started recouping payments on March 30 and will continue depending on the one-year anniversary of when providers were issued the first payment.

Beginning on the one-year anniversary of issuing the CAAP and continuing for 11 months, CMS will hold back 25% of Medicare payments.

Payments will be recouped at a rate of 50% for six months after the initial 11-month period.

At the end of the six-month period, MACs will issue demand letters for repayment of any remaining balance.

If the remaining balance is not repaid within 30 days from the date the letter is issued, interest will accrue at 4%. Interest will be assessed for each 30-day period that a balance remains unpaid.

CAAP payments were distributed under an expansion of Medicare’s Accelerated and Advance Payments Program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020.

Billing staff should be informed the recoupment has begun or will soon begin. Organizations that received CAAP payments should determine how much they received and the financial impact of CMS’ repayment schedule.