Medicare Over/Under Payments Have New Interest Rate
The interest rate Medicare contractors will charge/pay for claims underpayments/overpayments has changed. Beginning April 19, the private consumer interest rate is 11.00 percent—compared to 11.25 percent in the previous reporting period (Jan. 24 – April 18).
Medicare Regulation 42 CFR §405.378 provides for the interest assessment at the higher of the current value of funds rate (1 percent for 2010), or the private consumer rate as fixed by the Treasury Department. Interest accrues from the date of the final determination.
See regulation 42 CFR §405.378 for final determination definitions, as well as when exceptions and waivers to this regulation may apply.
Source: The Centers for Medicare & Medicaid Services (CMS) Transmittal 187, Change Request (CR) 7153, issued April 12