CMS sped up Medicare payments to hospitals and other providers at the beginning of the COVID-19 pandemic to help briefly eliminate financial pressure. Its time for medical facilities to start payment, however many are still facing monetary pressure connected to the pandemic..
Here are six things to understand about the Medicare advance payments:.
1. CMS expanded the Accelerated and Advance Payment Program in late March to help offset financial damage triggered by the COVID-19 pandemic. CMS revealed April 26 that it was reassessing pending and new applications for advance payments due to the schedule of funds under the Coronavirus Aid, Relief and Economic Security Act..
2. Since May, CMS had paid $100 billion in advance payment, the bulk of which went to medical facilities..
3. Medical facilities and other doctor are required to begin repaying the advance payments this month. Many medical facilities will have one year from the date the very first loan payment was made to repay the loans, according to Kaiser Family Foundation..
4. Payments for new Medicare claims will be offset to repay the loans. If the loans are not paid back within one year, an interest rate of about 10 percent will begin to be charged, according to KFF..
5. Since some medical facilities continue to experience capital concerns due to the pandemic, Congress is being asked to consider a COVID-19 relief package that would extend the timeline for paying back the Medicare loans, according to KFF..
6. The American Hospital Association is advising Congress to forgive the loans for all medical facilities..
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CMS broadened the Accelerated and Advance Payment Program in late March to help offset financial damage triggered by the COVID-19 pandemic. Medical facilities and other health care service providers are needed to begin repaying the advance payments this month. Payments for new Medicare claims will be balanced out to repay the loans. © Copyright ASC COMMUNICATIONS 2020.