CHA News

Payment Program Announced for Providers Affected by Change Healthcare Cyberattack

What’s happening: The Centers for Medicare & Medicaid Services (CMS) provided details on Medicare advance and accelerated payments for providers affected by the Change Healthcare cyberattack.   

What else to know: Impacted hospitals should apply through their Medicare administrative contractor (MAC).  

On March 9, CMS issued a notice formally announcing terms for hospitals, physicians, and other providers impacted by the Change Healthcare cyberattack to apply for accelerated and advance payments. CMS stated that hospitals, health systems, and other entities should contact their MAC for more information and to apply. California’s MAC, Noridian, has posted an application template and instructions on its website.  

Change Healthcare/Optum Payment Disruption accelerated payments and advance payments may be granted in amounts representative of up to 30 days of claims payments to eligible providers and suppliers. The average 30-day payment is based on the total claims paid to the provider or supplier between Aug. 1, 2023, and Oct. 31, 2023, divided by three.  

These payments will be repaid through automatic recoupment from Medicare claims for a period of 90 days. Recoupment will begin immediately once a hospital is able to submit Medicare claims again. A demand will be issued for any remaining balance on day 91 following the issuance of the accelerated or advance payment. There is a 30-day grace period before interest on the remaining balance begins; on day 31 after the demand letter is sent, interest will begin to accrue at the prevailing rate set by the Treasury, which is currently 12.375%.  

Additional information on eligibility is available in CMS’ fact sheet and frequently asked questions web page.