Medicare Loans Update

By Chad Mulvany

President Trump has signed into law the HR 8337, Short Term Continuing Resolution (CR) to fund the government through December 11.

The president’s action was expected after the Senate passed the bill earlier this week. Both sides of the aisle are eager to avoid a government shutdown prior to the election Nov. 3 and in the middle of a public health emergency. 

The legislation includes provisions that relax the terms of the Medicare Advanced and Accelerated Payment Program (AAP) loans. 

Now that the CR is signed into law, the AAP loan terms increased the repayment period to 29 months before a demand letter is submitted. During the 29-month period, there would be no claims offset for the first 12 months, a 25% payment offset for the next 11 months, and 50% offset for the final six months. The legislation would also reduce the interest rate applied to any funds outstanding after the initial 29-month period to 4%.  

Source: Chad Mulvany

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