Background on Accelerated and Advance Funds

In March of 2020, CMS expanded the COVID-19 Accelerated and Advance Funds (CAAP) Program to further Medicare Half A suppliers and Half B suppliers in response to the COVID-19 pandemic. An accelerated or advance fee is a fee that’s designed to assist money stream disruptions throughout a nationwide emergency.

In keeping with the CARES Act and underneath the Persevering with Appropriations Act, 2021 and Different Extensions Act, reimbursement underneath the CAAP Program begins one yr from the date of every issued fee to a supplier or provider.

CMS announcement and reimbursement phrases

On April 1, 2021, CMS introduced that, starting March 30, 2021, it started recovering CAAPs acquired by Medicare suppliers and suppliers whose one yr reimbursement date is up.

A supplier or provider could repay their CAAP by contacting their Medicare Administrative Contractor (MAC). If such CAAP is repaid in full, the reimbursement phrases famous beneath won’t apply.

If a CAAP just isn’t repaid in full (as detailed above) the next reimbursement phrases will apply:

• The reimbursement course of will start routinely. Compensation for every CAAP will start one yr from the issuance date of such fee.
• As soon as repayments start, Medicare suppliers and suppliers will proceed to submit claims, however a portion of the brand new claims might be offset to repay the CAAP (25% through the first 11 months of reimbursement and 50% through the subsequent 6 months).
• If the CAAP just isn’t paid in full after month 29, the MAC will difficulty a requirement letter to the supplier or provider requesting fee of the remaining steadiness. If fee just isn’t acquired in full inside 30 days from the date of the letter, curiosity will start accruing on the excellent steadiness at a charge of 4%.
• If a supplier or provider acquired a CAAP and by no means reopened his/her supplier or provider location, then the supplier or provider just isn’t penalized however might be required to repay the complete quantity on the finish of the 29 month interval. MACs will difficulty letters for any excellent balanced owned as detailed above.

If experiencing monetary hardship, suppliers and suppliers are inspired to achieve out to their MAC to request an Prolonged Compensation Schedule (ERS) after a requirement letter is issued. An ERS is a debt installment fee plan, which permits a supplier or provider to pay their money owed over a 3 yr interval. In instances of utmost hardship, the plan will be prolonged as much as 5 years.

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