Medicare Advanced and Accelerated Payment Program (AAP) | Practicing DPMs | APMA
Medicare Advanced and Accelerated Payment Program (AAP)

Updated October 2, 2020

In order to increase cash flow to providers of services and suppliers impacted by the COVID-19 pandemic, CMS expanded its current Accelerated and Advance Payment (AAP) program to a broader group of Medicare Part A providers and Part B suppliers. The expansion of this program was only for the duration of the public health emergency. In light of the additional funds appropriated under the CARES Act, CMS suspended the program on April 26, 2020.

Purpose of AAP Program Loan Funds

An accelerated/advance payment is a payment intended to provide necessary funds when there is a disruption in claims submission and/or claims processing. These expedited payments can also be offered in circumstances such as national emergencies, or natural disasters in order to accelerate cash flow to the impacted health-care providers and suppliers. CMS was authorized to provide accelerated or advance payments during the period of the public health emergency to any Medicare provider/supplier who submitted a request to the appropriate Medicare Administrative Contractor (MAC) and meets the required qualifications. As noted above, CMS suspended this program on April 26, 2020, and is no longer accepting applications.

Repayment and Recoupment of Fund

Originally, recoupment and repayment of the loans made to physician practices was due to start in August 2020. APMA and other stakeholders successfully advocated for a delay of this automatic recoupment, and Congress made the following adjustments to the repayment timeline, as part of its Continuing Resolution (HR 8337) to fund the government through December 11, 2020:

  • recoupment of disbursed funds postponed until 365 days after the advance payment has been issued to a physician practice; the balance would be due by September 2022;
  • reduced the per-claim recoupment amount from 100 percent to 25 percent for the first 11 months and the 50 percent of claims withheld for an additional six months—if not repaid in full, the 10.25-percent interest rate kicks in; and
  • lowered the interest rate from 10.25 percent to 4 percent. 

It is important to note that HHS has firmly stated that providers cannot use Provider Relief Fund payments to repay payments made under the CMS AAP Program.

Related News Items about the Medicare AAP COVID-19 Loans

  1. CMS Suspends Advance Payment Program (Apr. 27, 2020)
  2. APMA Urges CMS to Delay Recoupment from Medicare Accelerated and Advance Payment Program (Aug. 17, 2020)
  3. CMS Confirms AAP Loan Recoupment Delay (Sept. 21, 2020)


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