CMS ends advance payment program from Change Healthcare cyberattack

CMS announced that payments under its Accelerated and Advance Payment (AAP) Program, stood up during the Change Healthcare cyberattack, will cease on July 12. Medicare providers and suppliers across the country benefited from the Change Healthcare/Optum Payment Disruption (CHOPD) AAP Program during the period of prolonged disruptions that began in mid-February, when Change Healthcare fell victim to a ransomware attack.

CMS launched the CHOPD payments in March in an effort to ease cash flow disruptions. By mid-March, 94% of hospitals surveyed by the American Hospital Association (AHA) reported experiencing financial impacts from the cyberattack.

CMS issued CHOPD upwards of $2.55 billion in accelerated payments to more than 4,200 Part A providers, such as hospitals. Additionally, CMS issued more than $717.18 million to Part B suppliers, such as doctors, durable medical equipment suppliers, and non-physician practitioners.

As of June 17, CMS said it had already recovered more than 96% of the CHOPD payments. On July 12, CMS will stop accepting applications for CHOPD accelerated payments.

“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,” said CMS Administrator Chiquita Brooks-LaSure.

“Our efforts helped minimize the disruptive fallout from this incident, and we will remain vigilant to be ready to address future events.” 

CMS encouraged providers who are still facing difficulties with billing or receiving payment to reach out to Change Healthcare or their Medicare Administrative Contractor for assistance. CMS also urged providers to “double down on cybersecurity, with urgency.”