Medicare AAPP Recoupment Terms Finalized October 7, 2020A sigh of relief can be heard amongst the medical community last week. Lawmakers granted an extension for providers who had their Medicare payments advanced during the early stages of the COVID-19 public health emergency. The bill gives part B providers 1 year (originally 120 days) before CMS begins to recoup payments made under the Accelerated and Advance Payment Program. The repayments will be made via claim reimbursement offsets. It also states that CMS will only offset a provider’s payments after the initial grace period by 25% of the payment amount on the EOMB for the first 11 months of repayment, and then 50% of the payment amount on the EOMB for the remaining 6 months for a total extension and repayment period of 29 months.CMS will withhold Medicare payments after the 12 month grace period for a total of 17 months before requiring providers to repay the remaining balance in full. Additionally, the law reduced the interest rates on any outstanding balances from 10.25% to 4.0%.For your convenience we have provided to you a useable excel sheet to simplify your tracking efforts. As always, if you have any immediate questions about this new code, please contact Maureen West McCarthy at our medical practice management consulting division, or your KatzAbosch representative.About KatzAbosch: Founded in 1969, KatzAbosch is one of the largest CPA and business consulting services in the Mid-Atlantic region. As an accounting firm, our mission is to provide the highest quality accounting, tax, financial and management consulting services to our regional clients. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. KatzAbosch is consistently named a Best Accounting Firm to Work For in Accounting Today and has been named a Top 200 Accounting Firms in the Nation by Inside Public Accounting. Our firm is also ranked among the Top 15 Largest Accounting Firms in the Baltimore Area by the Baltimore Business Journal and a Top Workplace four times by The Baltimore Sun.