CMS Confirms AAP Loan Recoupment Delay | News | APMA
CMS Confirms AAP Loan Recoupment Delay

September 21, 2020

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APMA is pleased to report that CMS is holding off on garnishing Medicare providers’ payments related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act Medicare Accelerated and Advance Payment Program (AAP) as confirmed by Seema Verma last week. APMA expressed its significant concerns in August—specifically that the repayment terms are overly strict and would cause additional, unnecessary financial burdens for providers.

As members may recall, the CARES Act expanded this program in the spring and required CMS to begin garnishing 100 percent of loan recipients' Medicare payments starting four months after the loans were issued. The first loans went out in April, and recoupment should have started in August. CMS has not recouped any payments yet, and is currently evaluating when to begin recoupment as Congress also considers the issue. It is important to note that an administrative delay in recoupment alone does not erase providers’ statutory liability. APMA will continue to monitor this issue and provide updates to members as they arise.

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