CMS proposes new Medicare overpayment recovery rules

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The Centers for Medicare & Medicaid Services has proposed changes to the way it recovers, or recoups, Medicare overpayments to providers and suppliers.

Under the proposed rule, CMS could not move to recoup Medicare fee-for-service program overpayments from providers or suppliers until a decision is rendered at the second level of appeal by a Qualified Independent Contractor. To recoup overpayments, the Medicare program cuts present or future Medicare payments to providers or suppliers and applies the amount withheld against the debt.

The proposed rule also would implement the limitations on recoupment of overpayments under Medicare Parts A and B, as contained in the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.

Comments on the proposed rule can filed at http://www.cms.hhs.gov/regulations/ecomments .