All Medicare providers and suppliers who requested and received CAAPs that we began recovering those payments as early as March 30, 2021, depending upon the 1 year anniversary of when you received your first payment.
It also gives information on how to identify recovered payments.
Title V (Section 2501) of the Continuing Appropriations Act, 2021 and Other Extensions Act, enacted on October 1, 2020, amended the CAAP repayment terms for all providers and suppliers who requested and received CAAPs during the COVID-19 PHE and established a lower interest rate of 4% for any demanded overpayments to recover CAAP balances due.
The CAAP repayment terms provide as follows,
- Repayment begins 1 year starting from the date we issued your first CAAP.
- Beginning 1 year from the date we issued the CAAP and continuing for 11 months, we’ll recover the CAAP from Medicare payments due to providers and suppliers at a rate of 25%.
- After the end of this 11 month period, we’ll continue to recover the remaining CAAP from Medicare payments due to providers and suppliers at a rate of 50% for 6 months.
- After the end of the 6 month period, your Medicare Administrative Contractor (MAC) will issue you a demand letter for full repayment of any remaining balance of the CAAP.
- If we don’t receive a payment within 30 days, interest will accrue at the rate of 4% from the date your MAC issues you the demand letter.
- After that, we’ll assess interest for each full 30-day period that you fail to repay the balance.
If you received an accelerated or advance payment, CMS will begin to recoup any outstanding balance from any payments due to you from your Medicare claims.
This began as soon as March 30, 2021, depending upon the 1 year anniversary of when you received your first payment