Monday Jul 12, 2021
Facing recoupment of COVID-19 advanced payments? This updated info could be useful
The Centers for Medicare & Medicaid Services (CMS) recently updated its frequently asked questions(www.cms.gov) (FAQ) page for the COVID-19 Accelerated or Advanced Payment (CAAP)(www.cms.gov) program. The updates may be helpful for physicians who are now dealing with the recoupment process(www.cms.gov). They address how recoupment works and how it affects your Medicare claims payment amounts.
Some key points from the FAQ page:
- Recoupment begins one year after CMS issued a CAAP disbursement to you. This date may be different from the date you received the funds, depending on your bank’s internal rules or processes.
- For the first 11 months after recoupment begins, Medicare will automatically recoup 25% of all Medicare payments owed to you. Then the recoupment rate will increase to 50% for the next six months.
- At the end of those six months (a total of 29 months after the date your payments were issued), your Medicare administrative contractor (MAC) will determine if a CAAP balance remains. If so, the MAC will issue a letter requiring full repayment of any remaining balance. If the MAC doesn’t receive payment within 30 days after you receive the letter, interest will accrue at the rate of 4% from the date the letter was issued and be assessed for each full 30-day period that the balance remains unpaid.
— Kent Moore, Senior Strategist for Physician Payment
Posted at 11:45PM Jul 12, 2021 by Kent Moore