COVID-19 Accelerated/Advance Payment Revised Repayment Terms
The recently enacted Continuing Appropriations Act, 2021 and Other Extensions Act amended the repayment terms for the COVID-19 accelerated/advance payments. The changes to the repayment terms are listed below:
- The repayment period has been extended and the automatic recoupment will begin one year after the date the accelerated or advance payment was issued.
- During the first 11 months after repayment begins, the recoupment rate will be 25% and repayment will occur through an automatic recoupment of the provider/supplier Medicare payments.
- At the end of the 11-month period, the recoupment rate will increase from 25% to 50%. The automatic recovery at the 50% recoupment rate will continue for six months.
If the total amount of the accelerated/advance payment is not recovered within 29 months from the date the payment was made, a demand letter for the outstanding balance will be issued. The demanded amount will be subject to a 4% interest rate.
Lastly, the Accelerated and Advance Payments Program related to the COVID-19 Public Health Emergency will be reported on the remittance advice with “CVD”.
National Government Services will provide updates to you. We encourage you to check our education calendar for the latest updates. We will be scheduling sessions to assist you through this process.
Revised 3/17/2021
Posted 10/9/2020