CMS To Discontinue Second Overpayment Notice

As any physician knows, handling Medicare and Medicaid payments can be a very complex and time consuming process.  As a result, many physicians, through no fault of their own, occasionally overcharge Medicare and Medicaid.  To recoup such overpayments, the Centers for Medicare & Medicaid Services (CMS) administers the Medicare Overpayment Notification Process.  Until recently, where an alleged overpayment has not been promptly resolved and refunded, CMS would send physicians a series of three letters: an Initial Demand Letter, a Follow-up-Letter 30 days later, and then an Intent to Refer Letter.  However, CMS recently determined that the second letter was unnecessary because a substantial number of physicians responded promptly to the Initial Demand Letter with a payment.  In addition, a recoupment action occurs on average 41 days after the initial letter, and that action is accompanied with another notice regarding the overpayment. 

Thus, it is important for physicians to respond to the Initial Demand Letter in order to avoid further complications such as a referral to a debt collector.  In fact, if an overpayment is not resolved within 90 days of the Initial Demand Letter, CMS will provide a notice of intention to refer the debt for collection.

 

Source: http://www.pagingdrblog.com/2012/03/12/cms-to-discontinue-second-overpayment-notice/

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