MLN Article: Suppliers Can Avoid Overpayment Interest

A new Medicare Learning Network (MLN) Matters article says DME suppliers can avoid accruing and having to pay interest for Medicare overpayments.

Currently, the MLN Matters article number MM7688 says, Medicare contractors begin collecting overpayments on day 41 from the date of the initial demand letter. Suppliers are held accountable for overpayment interest, which begins accruing on day 31.

But a new "immediate recoupment" process will enable suppliers to request that recoupment begin before day 41.

"Providers who elect this option may avoid paying interest if the overpayment is recouped in full prior to day 31," the MLN Matters article says.

Suppliers opting for what Medicare is calling a voluntary repayment must notify appropriate Medicare contractors in writing, either for a one-time request for a specific overpayment, or a permanent request "for the specific demanded overpayment and all future overpayments."

The article adds that by choosing the immediate recoupment option, suppliers "are waiving their rights to interest under Section 935 of the Medicare Modernization Act should the overpayment be reversed at the Administration Law Judge level or subsequent higher levels."

Suppliers can choose to stop the immediate recoupment process, the article says, at any time. Those requests must also be made in writing.

To view the entire MLN Matters article, click HERE.

About the Author

Laurie Watanabe is the editor of Mobility Management. She can be reached at lwatanabe@1105media.com.

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