For those who received a Medicare accelerated or advance payment (CAAP) in 2020, Center for Medicare and Medicaid Services (CMS) will begin to recoup those payments off of upcoming Medicare remittances. Effective March 30th, 2021, recoupments will begin as of 1 year from the date CMS issued the CAAP.
CMS provided the CAAP repayment terms as follows:
- Beginning 1 year from the date CAAP was issued, and continuing for 11 months, CMS will recover the CAAP from Medicare payments due to providers at a rate of 25% of the Medicare payment that is being recouped.
- At the end of this 11 month period, CMS will recover any remaining CAAP from Medicare payments at a rate of 50% for a duration of 6 months.
- At the end of the 6 month period, Medicare Administrative Contractors (MACs) will issue a demand letter for full repayment of any remaining balance of the CAAP. For any balances remaining after 30 days of the letter, interest will accrue at a rate of 4% from the date the MAC issues the demand letter. After that, MACs will continue to assess a monthly interest charge until payments are made in full.
If you need any help with your Medicare billing please contact us here and a representative will reach out to you for a free consultation.