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Question:
We received what’s called a “demand letter” from our MAC. What do we do about this?
Answer:
When Medicare identifies an overpayment of $25 or more, the Medicare Administrative Contractor (MAC) initiates the overpayment recovery process by sending an initial demand letter requesting repayment. Demand letters from your MAC explain:
• Medicare made an overpayment
• Interest begins to accrue if you do not repay the overpayment in full within 30 days
• Options to request immediate recoupment or an Extended Repayment Schedule (ERS)
• Rebuttal/appeal rights.
You may choose one of the following options when responding:
• Make an immediate payment
• Request immediate recoupment
• Request the standard recoupment process (Automatic Offset/Withholding)
• Request an ERS
• Submit a rebuttal
• Request a redetermination to appeal the overpayment.
Above all, contact your MAC for further questions.
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