Spending Bill Extends Advance Payment Loan Repayment
September 30, 2020
The United States Congress passed a short-term spending bill to keep government programs operating through December 11. The bill, which is expected to be signed into law, includes an extension of the deadline for repayment of loans under the Medicare Accelerated and Advance Payments Program.
The bill postpones the recoupment of disbursed funds until one year after the advance payment has been issued to a physician practice. The balance would be due by September 2022. It also reduces the per claim recoupment amount from 100 percent to 25 percent for the first 11 months and 50 percent of claims withheld for an additional six months. The interest rate kicks in if not repaid in full; however, the bill lowers the interest rate from 10.25 percent to four percent.