After months of uncertainty, healthcare providers have been granted a much-needed extension of time to repay Medicare funds advanced under the Medicare Accelerated and Advance Payment (AAP) Program.
Repayments were originally required to begin 120 after the first payment was made, which meant that repayments were scheduled to begin as early as August 2020 for some providers. For many providers across the U.S. still experiencing significant financial losses, low occupancy, and increased costs due to the ongoing COVID-19 pandemic, the repayment deadline loomed large. With the enactment of the Continuing Appropriations Act, 2021 and Other Extension Act on October 1, 2020, providers now have one year from the date the first payment before repayment must begin. In addition, Medicare Part A providers have 29 months from the date of the first payment to repay the loan.
In addition to increasing the repayment period, the Act reduces the rate of interest from 10% to 4% after the repayment period expires.
These flexibilities provide much-needed relief to the long-term care industry and other health care providers who have been hit hard by the public health emergency and have been anxiously waiting to see how CMS would carry out the recoupment process.
For the full text of the Continuing Appropriations Act, 2021 and Other Extensions Act click here.
Stotler Hayes will continue to monitor and report on developments impacting the repayment of the AAP funds. If you have any questions, please contact Erin Saylor, Esq. at email@example.com.