Billing Beat

Changes to Medicare Overpayment Notification Process

December 1, 2011

CMS has made changes to the Medicare Overpayment Notification Process. If an outstanding balance has not been resolved, providers previously received three notification letters. CMS sent the second demand letter 30 days after the initial notification. Recent review has determined this is not efficient since the majority of providers respond to the initial demand letter and pay the debt. Recoupment action happens 41 days after the initial letter. Therefore, effective Tuesday, November 1, 2011, the second demand letters are no longer being sent to providers.

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