General Question for the Week of January 9, 2017

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.

Fee schedules, relative value units, conversion factors and/or related components are not assigned by the AMA, are not part of CPT, and the AMA is not recommending their use. The AMA does not directly or indirectly practice medicine or dispense medical services. The AMA assumes no liability for data contained or not contained herein.

CPT is a registered trademark of the American Medical Association.

General Question for the Week of January 9, 2017

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