CMS urged to delay APP loan repayments, waive interest

The Medical Group Management Association is calling on CMS to delay the deadline that providers need to begin repaying loans under the Medicare Accelerated and Advance Payment Program. 

In an Aug. 3 letter to CMS Administrator Seema Verma, the association of medical practice administrators and executives said physician practices have raised concerns about their ability to repay the  loans, as patient volumes haven't fully recovered. In June, physician practices were still seeing 25 percent fewer patients and lower cash flow because of that decreased volume. Increased costs for personal protective equipment are adding to the challenge, the association said.

The association urged CMS to:

  • postpone loan recoupment until 365 days after the APP loan was issued
  • reduce per-claim recoupment amount from 100 percent to 25 percent
  • extend the repayment period for physicians to at least two years
  • waive interest during the extended payment period

The association isn't the only provider group to issue such demands. The American Hospital Association and Federation of American Hospitals have said that health systems can't pay the loans back right now since many remain under financial pressure from the COVID-19 pandemic. They're asking for forgiveness of the Medicare payments. 

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