Medicare updates recoupment process with extended repayment option

Medicare is changing its overpayment recoupment process, effective July 1.

The revisions allow physicians to request an extended repayment plan during the first and second levels of appeal. If you don’t establish an extended repayment plan, your Medicare administrative contractor will resume recoupment at 100% until the debt is paid in full after the second level of appeal, regardless of any subsequent appeals you file. Interest only accrues on overpayments Medicare recovers through involuntary recoupment, not on debt paid through voluntary extended repayment plans.

Medicare is encouraging practices to make sure their staff know about:

• The new limits on recoupment during the first and second appeals.
• When to request an extended repayment plan vs. immediate recoupment.
• When interest accrues on overpayments.

For more information, please read the associated Medicare Learning Network Matters article on the Centers for Medicare & Medicaid Services’ website.

— Kent Moore, AAFP Senior Manager, Payment Strategies

Posted on June 7, 2024