CMS to End Program that Addressed Medicare Funding Following Cyberattack

June 19, 2024
Change Healthcare/Optum Payment Disruption (CHOPD) Program provided funding to Medicare providers

In a June 17 news release, the Centers for Medicare and Medicaid Services (CMS) announced that it is preparing to close the Accelerated and Advance Payment (AAP) Program for the Change Healthcare/Optum Payment Disruption (CHOPD) on July 12, 2024.

The CHOPD program launched in early March to ease cash flow disruptions experienced by Medicare providers and suppliers, including hospitals, pharmacies, and physicians, following the Change Healthcare ransomware attack in February.

According to the press release, “CHOPD accelerated payments have been issued to over 4,200 Part A providers, such as hospitals, totaling more than $2.55 billion. CMS also issued 4,722 CHOPD advance payments, totaling more than $717.18 million, to Part B suppliers, including doctors, non-physician practitioners, and durable medical equipment suppliers.”

“In the face of one of the most widespread cyberattacks on the U.S. healthcare 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 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.”

CMS stated that it had already recovered over 96 percent of the CHOPD payments. Providers are currently successfully billing Medicare again.

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