The House and Senate passed, and the President has signed, legislation to modify the Medicare Accelerated and Advanced Payment Programs implemented during the COVID-19 public health emergency.
These modifications, supported by CHA, include revising the original repayment obligation for the providers from a 12-month repayment period to 29 months from the date of the first payment and reducing the interest rate from 10.25% to 4%. Additionally, the modifications include limitations on the percent that the Centers for Medicare & Medicaid Services (CMS) can recoup from ongoing Medicare payments. They also include a more structured recoupment schedule for CMS to follow:
- During the first 11 months, CMS could not recoup more than 25% of the ongoing Medicare payments.
- For months 12 through 18, CMS could not recoup more than 50% of the ongoing Medicare payments.
- Full repayment is expected to CMS by the 29th month.
Lastly, the House continuing resolution would require the Secretary to publish the total Accelerated and Advanced Payments issued to each provider, the total amounts recouped, and the total interest collected. CHA will continue to advocate for these loans to be forgiven.