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

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