Update on Repayment Terms for Medicare’s Accelerated and Advance Payments Program
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If you received an accelerated or advance payment (AAP) from Medicare to help with your cash flow during the COVID-19 public health emergency, we have news. The Centers for Medicare and Medicaid Services (CMS) have amended the repayment terms: 

  • The repayment period has been extended and automatic recoupment will begin one year after the date the accelerated or advance payment was issued. (Previously, recoupment was to begin within 120 days after an initial payment was issued.) Recoupment will come via an automatic reduction in new claims submitted for Medicare services. Recoupment will end once the AAP loan is paid back in full.
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  • During the first 11 months after repayment begins, the recoupment rate will be 25%. For example, if the claim is for $100, CMS will automatically recoup $25 and pay $75 on the claim.

  • At the end of the 11-month period, the recoupment rate will increase from 25% to 50% and will continue at the rate of 50% for the next six months.

  • New applications for the accelerated and advance payments program related to the COVID-19 public health emergency are no longer being accepted, effective Oct. 8, 2020. 

  • For more information, access CMS’ Fact Sheet and FAQs

  • If you have questions, please contact the ISMS Health Policy Research and Advocacy team by email.
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