CMS on Thursday detailed new compensation timelines for suppliers that acquired COVID-19 Medicare loans from the Accelerated and Advance Cost Program after Congress loosened the mortgage phrases.
Congress initially required suppliers to begin making funds in August, however relaxed necessities within the newest authorities funding invoice. Medicare will mechanically get better 25% of Medicare funds through the first yr of compensation. That quantity will climb to 50% for the six months following the primary compensation yr.
“Within the throes of an unprecedented pandemic, suppliers and suppliers on the frontlines wanted a lifeline to assist hold them afloat,” CMS Administrator Seema Verma stated in an announcement. “CMS’ superior funds have been loans given to suppliers and suppliers to keep away from having to shut their doorways and doubtlessly inflicting a disruption in service for seniors. Whereas we’re seeing sufferers return to hospitals and medical doctors offering care, we’re not but again to regular.”
Suppliers that acquired COVID-19 aid loans from Medicare anticipated that CMS would reduce off their fee-for-service reimbursement after 4 months, however CMS by no means garnished funds, whilst this system’s deadlines handed, as congressional negotiations have been ongoing.
Mortgage repayments might be extremely troublesome for some financially strapped hospitals, and hospital finance specialists estimate that as much as 20% of hospitals that acquired the loans could also be pressured to restructure, consolidate or shut when CMS begins to recoup the funds.