Tax Reform, COVID-19, Pharmacy Accounting Trends

Financial Relief for Medicare Providers – Accelerated and Advance Payment Program

Doctors office with stethoscope in foreground and soft focus hand in background writing a report.

The Centers for Medicare and Medicaid Services (CMS) has expanded its Accelerated and Advance Payment Program for Medicare participating doctors, hospitals, durable medical equipment suppliers and other Medicare Part A and Part B providers and suppliers. The program is designed to increase cash flow to those who have had a disruption in claims due to COVID-19.

These advance payments must be repaid beginning 120 days from payments for hospitals and 210 days from payment for all other Part A providers and Part B suppliers. It is important to note, future reimbursements for claims will be reduced as the advance payments are paid back. This will impact future cash flow beyond 210 days for Medicare Part B suppliers.

  1. To qualify for these advance payments the provider/supplier must:
  2. Have billed Medicare for claims within 180 days immediately prior to the date of the signature on the provider or supplies request form,
  3. Not be under active medical review or program integrity investigation
  4. Not have any outstanding delinquent Medicare overpayments, and
  5. Not be in bankruptcy.

If your pharmacy has seen a significant impact to your Medicare Part B billings, this is an area that you should consider as you evaluate all the small business relief options available as a result of COVID-19.

Click here for more information: https://www.cms.gov/newsroom/press-releases/trump-administration-provides-financial-relief-medicare-providers

https://www.cms.gov/files/document/Accelerated-and-Advanced-Payments-Fact-Sheet.pdf

You can stay up-to-date on many of the relief options and tax impacts as they relate specifically to independent pharmacies through our coronavirus advisory page.

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