Posted Saturday, April 10, 2021
CMS has notified providers and suppliers who received COVID-19 Accelerated and Advance Payments (CAAPs) that the MACs began recovering those payments as early as March 30, 2021, depending upon the one-year anniversary of when the first payment was received.
The CAAP repayment terms provide as follows:
- Repayment begins 1 year starting from the date CMS issued your first CAAP.
- Repayment begins 1 year starting from the date CMS issued your first CAAP.
- Beginning 1 year from the date the first payment was issued and continuing for 11 months, CMS will l recover the CAAP from Medicare payments due to providers and suppliers at a rate of 25%.
- After the end of this 11-month period, CMS will continue to recover remaining CAAP from Medicare payments due to providers and suppliers at a rate of 50% for 6 months.
- After the end of the 6-month period, the MAC will issue a demand letter for full repayment of any remaining balance of the CAAP.
- If payment is not received within 30 days, interest will accrue at the rate of 4% from the date your MAC issues you the demand letter. After that, interest will be assessed for each full 30-day period that you fail to repay the balance.
CMS will show the recoupment on the remittance advices issued for Medicare Part A and B claims we process after the 1-year anniversary of issuing the first payment. The recoupment will appear as an adjustment in the Provider-Level Balance (PLB) section of the remittance advice.
Source: NAHC Report
About Corridor
For over 30 years, Corridor has partnered with home-based care providers, delivering powerful solutions to support the unique challenges of caring for patients in the home. Our team of operating executives, clinicians, and nationally renowned industry experts have run provider organizations and resolved the same challenges you face.
Focusing on key operational, regulatory and financial challenges, Corridor delivers solutions and deep expertise in coding, clinical documentation, compliance, billing and education.
To receive the most important industry updates, insights and news impacting home health and hospice, please make sure to sign up for our weekly newsletter.
