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CMS announces new AAP loan payment terms

CMS announces new AAP loan payment terms

WASHINGTON - CMS announced on Oct. 8 new terms for payments issued under the Accelerated and Advance Payment (AAP) Program.

Under the Continuing Appropriations Act, 2021 and Other Extensions Act, repayment will now begin one year from the issuance date of each provider's or supplier's accelerated or advance payment.

“In the throes of an unprecedented pandemic, providers and suppliers on the frontlines needed a lifeline to help keep them afloat,” said CMS Administrator Seema Verma. “CMS's advanced payments were loans given to providers and suppliers to avoid having to close their doors and potentially causing a disruption in service for seniors.”

CMS issued $106 billion in payments to providers and suppliers to alleviate the financial burden healthcare providers faced while experiencing cash flow issues in the early stages of public health emergency. More than 28,000 Part B suppliers, including doctors, non-physician practitioners and DME suppliers, received advance payments totaling more than $8.5 billion.


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