Last week, the Centers for Medicare and Medicaid Services (CMS) announced they had distributed more than $51 billion in advanced payments to healthcare providers. This is an increase from the first week of the expanded program when it was announced that CMS approved $34 billion in advanced payments. These payments are part of the Accelerated/Advance Payment Program which was expanded under the authority of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide additional support for Medicare providers during the COVID-19 pandemic. Note that these payments operate like a loan and must be repaid. However, there is significant advocacy by both hospitals and physician specialty societies to change the repayment terms.
Providers who request advanced payments will be provided funds based on claims submitted in 2019. As the current program is structured, repayment will begin for all providers 120 days after the initial payment is made. Additional information about the Accelerated and Advance Payment Program can be found on this fact sheet and information about the distribution of funds can be found on this McDermottPlus sample payment timeline.
To stay updated on COVID-19 resources, please visit the McDermottPlus Coronavirus Resource Center.
For more information visit the McDermottPlus Payment Innovation Resource Center or contact Sheila Madhani at email@example.com or Mara McDermott at firstname.lastname@example.org.