General Question for the Week of January 9, 2017

General Compliance Question of the Week

Question:

We received what’s called a “demand letter” from our MAC. What do we do about this?

Answer:

When Medicare identifies an overpayment of $25 or more, the Medicare Administrative Contractor (MAC) initiates the overpayment recovery process by sending an initial demand letter requesting repayment. Demand letters from your MAC explain:

• Medicare made an overpayment
• Interest begins to accrue if you do not repay the overpayment in full within 30 days
• Options to request immediate recoupment or an Extended Repayment Schedule (ERS)
• Rebuttal/appeal rights.

You may choose one of the following options when responding:

• Make an immediate payment
• Request immediate recoupment
• Request the standard recoupment process (Automatic Offset/Withholding)
• Request an ERS
• Submit a rebuttal
• Request a redetermination to appeal the overpayment.

Above all, contact your MAC for further questions.

Disclaimer: Every reasonable effort was made to ensure the accuracy of this information at the time it was published. However, due to the nature of industry changes over time we cannot guarantee its validity after the year it was published.