2011 First Quarter Interest Rate Released
Medicare contractors will charge/pay a slightly lower interest rate for claims underpayments/overpayments this period than in the last. Effective Oct. 22, the private consumer interest rate is 10.75 percent—compared to 11 percent for the previous quarter.
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: Centers for Medicare & Medicaid Services (CMS) transmittal 174, Change Request (CR) 7155, issued Oct. 18