Accelerated and Advance Payment Program (AAPP)

The Centers for Medicare and Medicaid Services (CMS) has provided for some key benefits for Medicare participating providers. We believe this AAPP is going to be a key bridge loan for hospitals, doctors and other providers during the COVID-19 crisis.

Accelerated and advance payments provide emergency funding and address cash flow issues based on historical payments when there is disruption in claims, usually when dealing with natural disasters.  CMS, however, is expanding the program for COVID-19.  The payments can be requested by hospitals, doctors, durable medical equipment suppliers and other Medicare Part A and Part B providers and suppliers.  

Physician practices can request an advanced payment of up to 100% of the Medicare payment amount based on a three-month lookback period, while hospitals can request up to 100%, or 125% for critical access hospitals, based on a six-month lookback period.   To qualify for accelerated or advance payments, the provider or supplier must meet all the following conditions:

• Have billed Medicare for claims within 180 days immediately prior to the date of signature on the provider’s/ supplier’s request form;
• Not be in bankruptcy;
• Not be under active medical review or program integrity investigation
• Not have any outstanding delinquent Medicare overpayments.

CMS issued a guidance document regarding the process.   A provider must submit their application to their local Medicare Administrative Contractor, which you can locate here.  If approved, CMS anticipates that payments will be issued within seven days of the provider’s request.   Most non-hospital providers will have to start repaying the amount after 120 days by offsetting amounts from new claims.  Most hospitals will have up to one year.

This is a critical cash flow opportunity for participating Medicare healthcare providers. All Medicare providers should consider applying to their local Medicare Administrative Contractor (MAC).