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Key Highlights of CMS Payment Program Termination Post Change Hack
- CMS will close the advance payments program on July 12.
- The program launched in March after a February 21 hack by ALPHV/BlackCat.
- $2.55 billion issued to 4,200 providers.
- $717.18 million issued to 4,722 suppliers.
- Over 96% of payments recovered.
- Providers with issues should contact Change Healthcare.
- Change Healthcare processes 50% of U.S. medical claims.
- Data for a third of Americans might have been stolen.
- UnitedHealth has issued $6.5 billion since the hack.
Deep Insights On CMS Payment Program Termination
The Centers for Medicare and Medicaid Services on 17th June, Monday stated that the organization is planning the closure of the CMS payment program. This program was primarily launched on 21st February, 2024 to as a healthcare cybersecurity for reducing the Change Healthcare hack impact.
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Impact of ALPHV/BlackCat Cyberattack
Earlier during the year, the entire Medicare providers and suppliers were affected by disruptions caused by a group called ALPHV, also known as “BlackCat”. Hence, to help some Medicare providers and suppliers affected by disruptions at Change Healthcare, the CMS Payment Program was launched.
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Program Termination Date
Currently, CMS plans for Payment Program termination on 12th July, 24. As quoted by the CMS, it will not accept new applications for Change Healthcare/Optum Payment Disruption accelerated or advance payments after that date.
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CMS Payment Program Details
CMS further disclosed the following details relating to the current CMS payment program closure:
Details | Amount | Recipients |
Accelerated payments | $2.55 billion | 4,200 providers, including hospitals |
Advance payments | $717.18 million | 4,722 suppliers (doctors, non-physician practitioners, durable medical equipment suppliers) |
Payments recovered | Over 96% | – |
Current billing status | Successfully billing Medicare | – |
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Instructions for Providers and Suppliers
The statement also quoted that any Medicare providers or suppliers experiencing billing or payment difficulties must contact Change Healthcare. However, it also stated that this will bring CMS policy changes but it will continue to monitor the fallout of the recent cyberattack deeply.
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Ongoing Healthcare Reimbursement Process
Currently, the CMS healthcare reimbursement process is ongoing and about 50% of medical claims in the U.S. for around 900,000 physicians, 33,000 pharmacies, 5,500 hospitals, and 600 laboratories are being sorted.
Statement from UnitedHealth CEO
Contrary to the recent CMS payment system closure, UnitedHealth CEO Andrew Witty said the hackers potentially stole data belonging to a third of Americans. A total of $6.5 billion in accelerated payments and loans to providers including hospitals has been worked as a CMS healthcare reimbursement since the February attack. Further news awaits.
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FAQs
1. Why is the CMS payment program closing?
Ans. The CMS payment program is closing due to the cybersecurity breach at Change Healthcare, perpetrated by ALPHV/BlackCat. This decision aims to mitigate the impact of the hack on healthcare providers and suppliers.
2. What is the impact of the CMS payment system closure on healthcare reimbursement?
Ans. The closure affects providers and suppliers who received accelerated and advance payments totaling $3.27 billion. Despite the closure, CMS continues its healthcare reimbursement processes for Medicare billing.
3. How can Medicare providers and suppliers affected by the CMS payment system closure seek assistance?
Ans. Providers and suppliers experiencing billing or payment issues should contact Change Healthcare for support. CMS advises them to monitor policy updates while addressing fallout from the cyberattack.