Under the expanded Accelerated and Advance Payments (AAP) Program, the CMS issued payments to providers and suppliers to help ease financial strain due to a disruption in claims submission and/or claims processing related to the COVID-19 public health emergency.
Recently, Congress enacted amended repayment terms for the accelerated and advance payments through the Continuing Appropriations Act, 2021 and Other Extensions Act:
Repayment will now begin one year after the date of the issuance of the payment.
During the first 11 months after repayment begins, repayment will occur through an automatic recoupment of 25 percent of Medicare payments otherwise owed to you.
During the succeeding six months, repayment will occur through an automatic recoupment of 50 percent of Medicare payments otherwise owed to you.
If you are unable to repay the total amount of the accelerated or advance payment through recoupment within 29 months, you will receive a demand letter requiring repayment of any outstanding balance, subject to an interest rate of four percent.
No action is necessary from you. The repayment process will begin automatically.
The following example helps illustrate the amended repayment terms for a provider that was issued an AAP on April 1, 2020:
We highly recommend that providers/suppliers create a way during the 29-month recoupment period to track the claims submitted, Medicare reimbursement received, and Medicare reimbursements recouped:
This will help you reconcile the payments recouped toward your AAP receivable in your system as they are a part of the payback process.
To assist you with your reconciliation, recoupment transactions related to the AAP will process with a coded adjustment that is assigned a "CVD" Accounts Receivable (AR) number.
Novitasphere (JH)(JL) users can get real time balance and other information about your accounts receivable by using the new AR transactions detail option. Watch our video to learn how to use this feature.
Not a Novitasphere user yet, register by visiting our Novitasphere enrollment page.
If you have any additional questions regarding the AAP repayment process, please contact our Hotline at 855-247-8428. Our hours of operation are Monday through Friday 8:30 AM – 4:00 PM ET.
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