Extended Repayment Plan & Interest Rates
Extended Repayment Plan
(MIM Part 2, Section 2223 & 2224 (CMS Pub. 13-2))
A provider is expected to repay any overpayment as quickly as possible. If the provider cannot refund the total overpayment within 30 days after receiving the first demand letter, the provider should request an extended repayment plan (ERP) immediately (also refer to Section 2224.1). It is in the best interest of the provider to inform the Fiscal Intermediary (FI) of their intentions to request for an ERP before the due date" of the amount of the overpayment indicated in the first demand letter. Timely notification may decrease the necessity to withhold all of the provider’s interim payments.
Fiscal Intermediaries are authorized to grant an ERP that would run no longer than 12 months from the date of the first demand letter. If a provider demonstrates that repayment within a 12-month period would create extraordinary financial hardship, it may request a longer period of repayment. These requests are still required to be submitted to the FI for proper review and completeness. Repayment plan requests for periods longer than 12 months from the date of the first demand letter, along with the FI’s recommendation, will be referred to the Centers for Medicare & Medicaid Services (CMS) Regional Office for disposition.
To ensure all pertinent information is submitted for an ERP request, we have attached a checklist that the provider can print and include with their request.
Note: An FI may continue recoupment of the provider’s payments to satisfy the overpayment pending receipt of the required documentation and a decision on the ERP request.
Medicare Interest Rates
Section 117 of Public Law 97-248, the Tax Equity & Fiscal Responsibility Act of 1982, requires the payment of interest on Medicare overpayments and underpayments, when applicable. Rate changes are published in the Federal Register.
For more information regarding extended repayment plans or interest rates—prior to November 19, 2002, please contact Medicare Reimbursement. You may contact the Senior Reimbursement Analyst or Reimbursement Supervisor at 1-866-734-9444, or refer to our Home Office Contacts page.
Section 117 Interest Rates Table:
| November 19, 2002 - February 10, 2003 | 11.25% |
| February 11, 2003 - April 27, 2003 | 10.75% |
| April 28, 2003 - August 10, 2003 | 11.625% |
| August 11, 2003 - November 2, 2003 | 12.125% |
| November 3, 2003 - May 6, 2004 | 12.00% |
| May 7, 2004 - August 8, 2004 | 11.875% |
| August 9, 2004 - November 11, 2004 | 11.75% |
| November 12, 2004 - February 7, 2005 | 12.00% |
| February 8, 2005 - April 24, 2005 | 11.875% |
| April 25, 2005 - November 2, 2005 | 12.00% |
| November 3, 2005 - January 24, 2006 | 12.25% |
| January 25, 2006 - April 23, 2006 | 11.875% |
| April 24, 2006 - July 18, 2006 | 12.125% |
| July 19, 2006 - October 17, 2006 | 12.625% |
| October 18, 2006 - January 18, 2007 | 12.375% |
| January 19, 2007 - April 19, 2007 | 12.5% |
| April 20, 2007 - July 19, 2007 | 12.375% |
| July 20, 2007 - October 18, 2007 | 12.625% |
| October 19, 2007 - January 17, 2008 | 12.500% |
| January 18, 2008 - April 17, 2008 | 12.125% |
| April 18, 2008 - July 23, 2008 | 11.375% |
| July 24, 2008 - October 21, 2008 | 11.125% |
| October 22, 2008 - Current | 11.375% |
Page Last Updated: Wednesday, 31-Dec-2008 10:49:11 CST
