CMS Issues Limitations on Recoupment

With the advent of the permanent Recovery Audit Contractor (“RAC”) program there is heightened interest in CMS’ policy regarding recoupment of overpayments. This interest has been coupled with concern because of CMS’ wavering efforts to address the provisions of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 which required a stay of recoupment during the initial stages of overpayment administrative appeals.


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