CMS lowers interest rates

Thursday, October 31, 2013

WASHINGTON – CMS has announced a 0.5% decrease in the interest rate on Medicare overpayments and underpayments, according to a recent AAHomecare bulletin. The rate is now 10.125%. Interest on overpayments and underpayments begins to accrue on the date a refund is first requested. Rates are assessed every 30 days and are not prorated when overdue payments are received in the middle of a 30-day period, according to the bulletin. Interest charged on overpayments is reimbursed through an approved schedule. The rate will remain constant unless a provider defaults on the repayment plan, in which case the rate may change to that day’s prevailing rate, according to the bulletin.