NGS Discontinues Second Overpayment Demand Letter

• By Laurie Watanabe
• Nov 02, 2011

National Government Services (NGS), the Jurisdiction B DME MAC, has announced it will no longer send additional demand letters to DME suppliers who have received Medicare overpayments.

At issue are DME suppliers who receive overpayment letters, which state the amount of the overpayments and request that the overpayment amounts be returned to NGS.

A supplier who did not refund the overpayment within 30 days used to receive a second overpayment letter. But NGS will no longer issue this additional warning.

Instead, an NGS bulletin stated, "If full payment is not received by the 40th day from the date of the initial demand letter, the offset process is started. Future payments will be offset until the overpayment is recouped."

The offset process requires deductions to be made to the supplier's Medicare check.

In addition, interest on an overpayment begins to accrue if NGS doesn't receive its overpayment refund within 30 days.