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Medicare Relaxes Terms for the Accelerated / Advanced Payment Program

Medicare Relaxes Terms for the Accelerated / Advanced Payment Program

The US Senate passed a government funding bill today that will also relax Medicare Accelerated / Advanced Payment terms in addition to keeping the government funded. Early in the public health emergency, CMS expanded its Accelerated / Advanced Payment program to all Medicare Part A and Part B providers, with most expecting recoupment of these advances to begin during the 2020 summer months. Because law-makers were still negotiating additional aid, CMS decided to postpone its recoupments on these payments. As a result, the new government funding bill alters the terms of this program which the President is expected to sign into law shortly.


The updated terms for the Medicare Accelerated / Advanced Payments will include the following:

  • Update will give providers 1 year after the Medicare Accelerated and Advance Payment Program loan was issued before recoupment would begin, an extension from 120 days under current law.
  • The recoupment rate would also be lowered from its current 100% level to 25% for the first 11 months of repayment, and 50% for the six months afterward.
  • The interest rate would be lowered from the current rate of 9.6% to 4% which will be applied if the advanced is not paid back in full during the above time period.



The full bill text can be found here:


This post was published October 1, 2020.



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