OASIS-Central

Q: What is the action taken when Medicare discovers an overpayment to a provider?

A: When Medicare discovers an overpayment of $10 or more, they will send a demand letter requesting payment. This letter will explain the process, including interest accrual (if payment not received within 31 days of the letter date). If they receive no response, a second demand letter may be sent. If payment is not received within 40 calendar days after the date of the first demand letter, Medicare will begin recoupment procedures. This means that the overpayment will be recovered from either current payments due to the provider or from future claims.

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