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Medicare Advanced and Accelerated Payment Recoupment Ends in September, Watch for Demand Letters from Noridian

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Hospitals and providers who received Medicare Advanced and Accelerated Payments (MAAP) were loaned the funds for 29 months from the date the funds were received. Hospitals that have not fully repaid the amount should be on the watch for a “demand letter” from Noridian requesting any outstanding balance after the 29th month.  

Depending on when MAAP funds were first received, the letter will be sent sometime between late August through September. The letter will be mailed to the billing address listed in the Centers for Medicare & Medicaid Services (CMS) Provider Enrollment, Chain, and Ownership System. 

If a hospital receives a demand letter, it will have 14 days to pay the outstanding balance in full. Otherwise, on the 15th day CMS will withhold 100% of Medicare payments until the remaining balance is resolved. For hospitals experiencing financial hardship, an extended repayment schedule may be available, which allows a hospital experiencing financial hardship to pay debts over the course of three years if eligibility criteria are met. This can be extended to as many as five years, where certain extreme hardship criteria are met.  

Additional information about applying for an extended repayment schedule is available on the Noridian website. For additional information on the demand letter process, please see CMS’ FAQs related to MAAP.