House passes funding bill with relaxed Medicare loan repayment terms

Your home all approved a short-term funding bill Sept. 22 to prevent a government shutdown next week. Relaxed terms for Medicare sped up loan payments are consisted of in the expense.

Alia Paavola –
Wednesday, September 23rd, 2020
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Six things to know:.

1. When CMS would start recouping the Medicare accelerated payments that were provided to providers this spring to assist balance out coronavirus-related financial damage, the costs would extend the start date for.

2. Providers would have one year after the Medicare advance payment loan was provided prior to CMS would start keeping payments to recover the funds. This extends it from 120 days.

3. The costs likewise increases the timeline for medical facilities to repay the loan in complete before interest will accrue. Health centers would likewise have 29 months to repay the loan, up from 12 months under current law.

4. In the expense, the rate of interest is also reduced to 4 percent, below about 10 percent..

5. In addition, the payment rate would be reduced. Terms recommend recoupment would start at a rate of 25 percent for the first 11 months and 50 percent for the following 6 months..

6. The costs comes after healthcare facilities across the U.S. have asked Congress to consider a relief plan or bill to extend the timeline as a few of them continue to experience cash flow problems due to the pandemic.

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Suppliers would have one year after the Medicare advance payment loan was released before CMS would begin withholding payments to recover the funds. The costs also increases the timeline for hospitals to pay back the loan in full prior to interest will accumulate. Health centers would also have 29 months to pay back the loan, up from 12 months under current law.

In addition, the payment rate would be reduced.

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