CMS Starts AAP Program Recoupments

WASHINGTON, D.C. (April 9, 2021)—For a short period early in the COVID-19 pandemic, the Centers for Medicare & Medicaid Services (CMS) expanded its Accelerated and Advanced Payments (AAP) Program to Medicare providers and suppliers, including DME and home health suppliers. The expanded program was available for suppliers starting March 28, 2020, and the suspension of the program was announced a month later in April. According to CMS, more than 28,000 Part B providers and suppliers received a total of over $8 billion in advance payments through the expanded AAP Program.  

However, unlike the funds from the Provider Relief Fund, payments from the AAP program are required to be repaid at the one-year mark from the issuance date. For any outstanding balance after the one-year mark, CMS will begin recouping payments from the supplier’s Medicare claim payments. Supplier’s billing staff should be notified that recoupment will begin on or after the one-year mark of the AAP issue date. 

The recoupment process can take up to 17 months starting from the one-year mark. Medicare will first automatically recoup 25% of the payments for the first 11-month period. Medicare will then increase it to 50% for the following six months. If supplier is not able to fully repay by the end of the six months, the DME MACs will send a letter to the supplier requesting repayment for the remaining balance within 30 days. If the supplier is unable to repay within 30 days, a 4% interest rate will be applied to the remaining balance.

Check the related MLN Matters article and CMS Fact Sheet for more information on the repayment process.

—Via AAHomecare