CMS recently announced that its automatic recoupment of COVID-19 Accelerated and Advance Payments would begin March 31. These payments were an advance of up to three months of Medicare payments to help physician practices keep the lights on early in the COVID-19 pandemic. AMA strongly advocated for improved repayment terms, which Congress and CMS adopted in 2020. Under the revised repayment terms, physicians should be aware of several repayment requirements.

• These funds are loans that are required to be repaid.
• Repayment begins one year from when the Medicare advance payment is received, rather than 120 days under the original terms.
• The per claim recoupment amount was reduced from 100% to 25% for the first 11 months, and then 50% for an additional six months.
• If there is an outstanding balance after the 17-month recoupment time frame, the Medicare Administrative Contractor (MAC) will issue a demand letter requiring repayment subject to an interest rate of 4%, a decrease from the original interest rate of 10.25%.
• Physicians may repay the Medicare advance payment in full at any time by contacting their MAC.

The AMA is very interested in hearing from physicians about their experience repaying the Medicare advance payments, as it may vary depending on the carrier and whether you are able to check your balance and request an extended repayment option due to ongoing hardships. Please share your feedback via AMA.Advocacy@ama-assn.org.

Read the recoupment announcement from CMS here >>

For more information about the programs established by the federal government to help physician practices offset the financial impact of COVID-19, access these AMA resources.