CMS has begun to recoup the loan that Medicare made to healthcare providers last year during the COVID-19 pandemic.
These providers were originally scheduled to start repayment of the Medicare payments made in advance during the COVID-19 pandemic in August 2020. But CMS and lawmakers through the Continuing Appropriations Act, 2021, and Other Extensions Act (P.L. 116-159) extended original repayment timelines in light of the ongoing struggles stemming from the pandemic.
During the recoupment period, CMS will hold back a portion of new Medicare claims from providers — 25 percent during the first 11 months of recoupment and 50 percent during the six months — until the payments advanced last year are recouped.
Providers are required to have paid back the advanced payments in full 20 months after they received the first payment. If they fail to do so, CMS will charge interest of four percent on the remaining balance.
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