The Centers for Medicare and Medicaid Services (CMS) has updated its information regarding repayment of Medicare accelerated and advanced payments during the COVID-19 emergency. The program was put in place to help sustain hospitals and providers during the time of reduced service volumes during the COVID-19 emergency. On March 30, CMS began recoupment of advanced payments by withholding 25 percent of a hospital or provider’s current eligible Medicare payments beginning one year from the date of the hospital’s receipt of the advanced funding. After eleven months, the withholding percentage increases to 50 percent for an additional six months. For remaining balances after that point, CMS will issue demand letters requiring repayment of the outstanding balance, subject to an interest rate of four percent consistent with the Continuing Appropriations Act, 2021. WSHA and other hospital organizations successfully advocated for the four percent rate, which is significantly lower than the existing CMS interest rate for outstanding balances. More information, including treatment of advanced payments in Medicare cost reports is in the FAQs document, the COVID-19 Accelerated and Advance Payments webpage, and a recent MLN Matters article. (Andrew Busz, AndrewB@wsha.org)
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