News: CMS ends cyberattack relief program in July

In response to a cyberattack made on Change Healthcare, a subsidiary of the UnitedHealth Group, which caused large cash flow reductions and huge patient delays, CMS began the Accelerated and Advance Payment program to assist hospitals in early March. In a recent press release, they announced the conclusion of this program which will stop accepting applications after July 12, 2024. CMS reported that the program has advanced $2.55 billion in Medicare payments to more than 4,200 Part A providers and more than $717.18 million in payments to Part B suppliers, Medscape Medical News reported.

In their press release, CMS says that the Medicare billing system is now functioning properly and 96% of the early payments have been recovered. The advances were to represent less than 30 days of typical claims payments in a three-month period of 2023, with full repayment expected within 90 days, no extensions allowed.

“In the face of one of the most widespread cyberattacks on the U.S. health care industry, CMS promptly took action to get providers and suppliers access to the funds they needed to continue providing patients with vital care,” CMS Administrator Chiquita Brooks-LaSure said in a statement. “Our efforts helped minimize the disruptive fallout from this incident, and we will remain vigilant to be ready to address future events.”

Ongoing concerns from healthcare organizations remain. “Our members report that the aftereffects of this event will likely be felt throughout the remainder of the year,” Ben Teicher, an American Hospital Association spokesman, told Medscape Medical News. In addition to being concerned about their ability to process claims and appeal denials, the safety of reconnecting to cyber services, and access to information needed to bill patients and reconcile payments, hospitals are also concerned about “financial support to mitigate the considerable costs incurred as a result of the cyberattack,” he said.

Editor’s note: To read Medscape Medical News’ coverage of this story, click here. To read the CMS press release, click here.