Healthcare Alert: Medicare Accelerated and Advanced Payments – Increased Recoupment

In April 2020, most providers took advantage of the ability to request Medicare advance payments in response to the COVID-19 pandemic. These funds provided flexibility and allowed many to meet payroll and to remain open. The program included no repayment for the first year, and a 25% recoupment against claims for the following eleven months. However, this repayment will now increase to 50% of claims.

The repayment process will begin automatically with no action required by the provider/supplier. CMS does not have the authority to reduce the recoupment percentage, even if a provider requests this reduction.

Providers have most likely seen an increase in the amount they are paying back to CMS for the AAP recently.

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