Prompt payment interest rate revision for Feb. 2017

Medicare must pay interest on clean claims if payment is not made within the applicable number of calendar days (i.e., 30 days) after the date of receipt. The applicable number of days is also known as the payment ceiling. The interest rate is determined by the applicable rate on the day of payment. This rate is determined by the Treasury Department on a six-month basis, effective every January and July 1. The interest period begins on the day after payment is due and ends on the day of payment. The new rate of 2.5 percent is in effect through June 30, 2017.

Source: https://medicare.fcso.com/Billing_news/209233.asp