New Interest Rate for Medicare Overpayments and Underpayments

The Centers for Medicare & Medicaid Services (CMS) recently announced new interest rates for Medicare overpayments and underpayments.  Effective October 18, Medicare contractors will apply an interest rate of 10.125 percent to all overpayments and underpayments.  The new interest rate is a decrease from the previous rate of 10.375 percent set in July 2013.

CMS’ transmittal (229) on the new interest rate is available at:

http://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/Downloads/R229FM.pdf.

Centers for Medicare & Medicaid Services.  “Notice of New Interest Rate for Medicare Overpayments and Underpayments- 1st qtr Notification for FY 2014.”  Transmittal 229.  22 Oct. 2013.