The Basics

The Patient Protection and Affordable Care Act, Public Law 111-148 (Act), creates new potent requirements for providers and suppliers to return Medicare and Medicaid overpayments. Subsection 6402(d)(1) of the Act says: If a person has received an overpayment, the person shall —

• Report and return the overpayment to the Secretary [of the U.S. Department of Health & Human Services], the State, an intermediary, a carrier, or a contractor, as appropriate, at the correct address; and

• Notify the Secretary, State, intermediary, carrier, or contractor to whom the overpayment was returned in writing of the reason for the overpayment.

In Subsection 6402(d)(2), the Act goes on to set the deadline to return the overpayment:

• An overpayment must be reported and returned under paragraph (1) by the later of --

• The date which is 60 days after the date on which the overpayment was identified; or

• The date any corresponding cost report is due, if applicable.