Risk Management Articles
Medicare Immediate Recoupment
In the context of the Medicare claims system, “Immediate Recoupment” is a process which allows Medicare to automatically recoup money from a provider when Medicare has determined that a claim or claims were improperly paid and there has been an “overpayment.” This recoupment occurs by withholding payment from future claim payments rather than waiting for the provider to mail back a check or go through the standard repayment process. While this can speed up resolution and prevent interest on overpayments from accruing, it can also result in a sudden and unexpected interruption to a provider’s cash flow. In our experience, many providers do not understand the ramifications of Immediate Recoupment, and they often do not even realize they (or their billing staff) have elected Immediate Recoupment. Importantly, Immediate Recoupment is a voluntary repayment option. There are two ways a provider can elect Immediate Recoupment
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