Updates to the CMS Extended Repayment Schedule Information and Interest Rates
Posted on Thursday, April 18, 2019 12:53 AM
This week, CMS released updates to two important transmittals, one relating to Extended Repayment Schedules (ERS), and the other to interest rates.
The ERS update states: “Contractors should consider ERS requests for 6-11 months on a case-by-case basis. Approval should only be for cases where it is clear that the debt can be repaid in this short period. Requests for 6 -11 month ERSs do not require submitting financial documentation if the provider meets the hardship qualifications and does not fall within a scenario found in section 50.3(1).” Providers shall request for a 6-11 month ERS without submitting financial documentation if they meet the hardship qualifications and do not fall within a scenario found in section 50.3(1).
The second update states: “The contractor should not grant an ERS to a provider where there is a previously defaulted ERS that was not resolved (reinstated, paid up to date, or paid in full).” CR 11128 also requires the Medicare Administrative Contractors (MACs) to provide certain instructions regarding ERS, among other things. Providers must also make a good faith payment each month until a decision is made about their ERS application. Providers interested in an ERS can find all the updates to the process in the transmittal.
The change to interest rates paid on Medicare overpayments and underpayments is updated quarterly. The new rate effective April 17, 2019 is 10.375 percent.
Source: NAHC Report
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