Overpayment/Underpayment Interest-Rate Change Announced

With a new quarter comes a new interest rate for Medicare overpayments and underpayments, the Centers for Medicare & Medicaid Services announced.

A news bulletin released by National Government Services (NGS), the Jurisdiction B DME MAC, stated the interest rate starting Oct. 18, 2012, had changed to 10.375 percent.

"The interest rates on overpayments and underpayments (are) determined in accordance with regulations promulgated by the Secretary of the Treasury and is the higher of the private consumer rate or the current value of funds rate prevailing on the date of final determination," the NGS announcement stated. "Interest accrues from the date of the initial request for refund and is assessed for each 30-day period, or portion thereof, that payment is delayed after the initial refund request."

The interest rate for the third quarter of 2012 was 11 percent.

About the Author

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

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