CMS Amends Payment Requirements for AAP

At the start of this year, the COVID-19 pandemic not only created a health crisis; it also launched an economic crisis for individuals and business owners everywhere. Medical providers were not spared during the COVID-19 pandemic, many felt the pinch as patients worried about their health safety when leaving their homes. Senior citizens have been especially vulnerable during this pandemic, which has directly impacted healthcare providers.

To assist healthcare providers during this tumultuous time, the Centers for Medicare and Medicaid Services (CMS) created a Medicare Loan that allowed CMS to advance payments to providers. Now, this program has an amendment to the terms for payments issued under this Accelerated and Advance Payment Program (AAP). The original plan required payments to begin in August of this year.

The new amendment modifies the terms, to require repayment to begin one year after the payment was issued. Following that first year, Medicare will automatically recoup 25 percent of Medicare payments otherwise owed to the provider or supplier for eleven months.

At the end of the eleven months, recoupment will increase to 50 percent for another six months. If the provider or supplier is unable to repay the total amount of the AAP during this time (a total of 29 months), CMS will issue letters requiring repayment of any outstanding balance, subject to an interest rate of four percent.

CMS will also offer an Extended Repayment Schedule (ERS) for providers experiencing financial hardships and in need of further assistance with a payment plan. If interested, providers should contact their Medicare Administrative Contractor (MAC) for information on how to request and process an ERS. In the coming weeks, CMS will be contacting each provider in this program to discuss the payment plans for each unique situation. For more news related to the CMS, visit


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