I Have A Recoupment Question

Published 01/04/2021

Brief Description
If an overpayment is determined and a demand letter is sent to the provider notifying them of the amount owed to the Medicare program, and if payment is not received within the specified time period, all payments to the provider are recouped until the overpayment is collected. Recoupment of payments can also be made from affiliated providers.

Providers do not need to do anything to request standard recoupment after receiving a demand letter. Recoupment will begin automatically in accordance with the timeframe outlined in the demand letter received.  Interest will accrue on the outstanding principal balance of the debt for each 30-day period in which a balance remains. 

If an outstanding balance remains on an overpayment in an eligible collection status, a final demand letter will be issued and the debt may be referred to the Department of Treasury for collection.

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