CMS on Thurs detailed new repayment timelines pertaining to providers that received COVID-19 Medicare health insurance loans from the Accelerated and Progress Payment Program after Congress loose the loan terms.
Congress initially required companies to start making payments in Aug, but relaxed requirements in the newest government funding bill . Medicare insurance will automatically recover 25% associated with Medicare payments during the first yr of repayment. That number will ascend to 50% for the six months following a first repayment year.
“In the throes of the unprecedented pandemic, providers and providers on the frontlines needed a personal assistant to help keep them afloat, ” CMS Administrator Seema Verma said within a statement. “CMS’ advanced payments had been loans given to providers and providers to avoid having to close their doorways and potentially causing a disruption operating for seniors. While we are viewing patients return to hospitals and physicians providing care, we are not however back to normal. ”
Providers that received COVID-19 relief loans from Medicare anticipated that CMS would cut off their particular fee-for-service reimbursement after four weeks, but CMS never garnished obligations , even as the program’s deadlines passed, as congressional negotiations had been ongoing .
Loan repayments could be incredibly hard for some financially strapped hospitals, plus hospital finance experts estimate that up to 20% associated with hospitals that received the financial loans may be forced to restructure, consolidate or even close when CMS begins to recover the funds.