As a result of the Continuing Appropriations Act for 2021 enacted on October 1, 2020, physicians who received advance or accelerated payments (AAP) from Medicare due to the COVID-19 pandemic will have more time to pay back the loans. Now, instead of being due in August of 2020, repayment has been extended and will not begin until one year from the date the AAP was issued to the provider. CMS reports that it has made AAP loans totaling $8.5 billion to physicians and other Part B providers.
Under the new repayment terms:
- Repayment does not begin for one year starting from the date the accelerated or advance payment was issued.
- Beginning at one year from the date the payment was issued and continuing for eleven (11) months, Medicare payments owed to providers and suppliers will be recouped at a rate of 25% by automatic deduction.
- After the eleven (11) months end, Medicare payments owed to providers and suppliers will be recouped at a rate of 50% for another six (6) months.
- After the six (6) months end, a letter for any remaining balance of the accelerated or advance payment(s) will be issued.
If a physician is experiencing financial or other hardship, they may qualify for an extended payment schedule. Physicians can contact their Medicare Administrative Contractor to request a hardship extension and to find out the current balance of their AAP loan. Read the loan repayment fact sheet for more information.