October 06, 2020

President Extends Government Funding and Revises Medicare Reimbursement

On Oct. 1, President Donald Trump signed Continuing Appropriations Act, 2021 and Other Extensions Act (CR) (H.R. 8337) into law that extends fiscal year 2020 government funding levels through Dec. 11, 2020, changes the Medicare Accelerated and Advance Payments (AAP) program and extends funding for certain National Institutes of Health (NIH) grants.

Under the CR, the AAP permits healthcare providers to request that recoupment of Medicare reimbursement to offset the loan begin one year, as opposed to 120 days, from initial issuance of payment. Once the process begins, for the first 11 months, recoupment from Medicare claims will be 25%, which will be followed by six months at 50%, and the outstanding balance will be due after 29 months. In the event it is not fully repaid, the interest rate will take effect. The CR lowers the interest from 10.25% to 4%, and requires public AAP data reporting, which includes total payments made, provider type payments and payment recipients. The reporting will continue until all funds are recouped.

The CR also includes language allowing the NIH to provide extensions to specific grants set to expire on Sept. 30 that were negatively impacted by the pandemic. The funds, available to grants originally obligated through FY 2015, would be extended through FY 2021.