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COVID Accelerated/Advance Payment Revised Repayment Terms

Last updated Oct 19 2020
Jurisdictions:

The recently enacted Continuing Appropriations Act, 2021 and Other Extensions Act amended the repayment terms for the COVID accelerated/advance payments. The changes to the repayment terms are listed below.

  • The repayment period has been extended, and the automatic recoupment will begin one year after the date the accelerated or advance payment was issued.
  • During the first 11 months after repayment begins, the recoupment rate will be 25% and repayment will occur through an automatic recoupment of the provider/supplier Medicare payments.
  • At the end of the 11-month period, the recoupment rate will increase from 25% to 50%. The automatic recovery at the 50% recoupment rate will continue for 6 months.
  • If the total amount of the accelerated/advance payment is not recovered within 29 months from the date the payment was made, a demand letter for the outstanding balance will be issued. The demanded amount will be subject to a 4% interest rate.