CMS Suspends Advance Payment Program to Part B Suppliers and Reevaluates Accelerated Payment Program

On April 26, 2020, the Centers for Medicare & Medicaid Services (CMS) announced that its suspending its Advance Payment Program to Part B Suppliers, effective immediately. Additionally, CMS announced that it is reevaluating the amounts to be paid out under the Accelerated Payment Program. To date, CMS has paid out $40.4 billion in payments to Part B suppliers and $59.6 billion in payments to Part A providers under the two programs. CMS has also updated its fact sheet regarding the Accelerated Payment Program and the Advance Payment Program to reflect these changes.

By way of background, CMS had previously expanded these temporary loan programs to ensure healthcare providers and suppliers were able to obtain the resources necessary to combat COVID-19. The purpose of the programs is to address cash flow issues to healthcare providers and suppliers during a public health emergency. Expansion of these programs was necessary due to the financial burden COVID-19 has placed on the healthcare industry nationwide.

Please note that while CMS reevaluates the Advance Payment Program, it will not accept any new applications for the program. Further, CMS will be reevaluating all pending and unreviewed applications received prior to its announcement in light of direct payments made by the Department of Health and Human Services’ (HHS) Provider Relief Fund.

Further, note that CMS’ announcement specified that the suspension and reevaluation of CMS’ payment programs does not impact funding from other sources. Specifically, the announcement provided that funds from HHS’ Provider Relief Fund will continue to be distributed to support healthcare-related expenses during the COVID-19 pandemic.

For any questions regarding CMS’ suspension of the Advance Payment Program to Part B providers or its reevaluation of the Accelerated Payment Program, please contact Abby Pendleton, Esq. by email at apendleton@thehlp.com, or your regular HLP attorney, or Partners@thehlp.com, or call (248) 996-8510.