Providers Repayment – CMS Collecting COVID-19 Medicare Loans
Beginning on August 1st, providers are expected to start repaying accelerated Medicare loans received for COVID-19 relief. To ensure payments are recouped, providers won’t receive Medicare reimbursement from their claims until the amount of the loan received is reduced to zero. With more than $100 billion in loans given to providers, we outlined what to expect going forward.
- Providers are expected to start paying back loans 120 days after CMS issues the payment.
- CMS will automatically zero out Medicare fee-for-service payments from any newly submitted claims until the borrowed funds are repaid.
- Hospitals will have to repay the full balance of their loan a year after it was issued. Other Medicare Part A providers have a total of 210 days.
Congress has been negotiating loan forgiveness or looser repayment structures in the next round of the COVID-19 relief bill. To stay updated, subscribe to our newsletters