Extended Repayment Schedule (ERS) - JA DME
Extended Repayment Schedule (ERS)
Anytime an overpayment to Medicare has been identified, suppliers are expected to repay the overpayment as quickly as possible. However, circumstances may exist where prompt repayment of the full amount of debt could constitute a hardship to the supplier. If the supplier is unable to refund the total overpayment within 30 days after receiving the first demand letter due to financial hardship, suppliers may request to repay the debt in monthly installments rather than by paying in one lump sum or by having future claims payments applied to the debt, also known as "offset." This process was established by CMS and the agreement is known as an Extended Repayment Schedule.
An ERS establishes a formal repayment schedule on specific overpayments, allowing suppliers to make predetermined monthly payments. Noridian will not apply claim payments to debts that are part of an ERS. This allows the supplier to maintain cash flow from Medicare. If the supplier fails to make the agreed-upon monthly payments however, CMS requires that offset resumes and claim payments be applied to the ERS debt.
In addition, interest continues to accrue against the ERS debt and any new debts (outside of the ERS) still need to be repaid within 30 days to avoid interest and within 41 days to avoid offset.
Documentation
Suppliers wishing to request an ERS must provide CMS with specific financial documents. The information in these documents is used to determine the validity of the supplier's hardship claim and to gauge the supplier's ability to repay the debt within the timeframe requested. Not all requests for ERS are approved and it is in the supplier's best interest to provide all documents at the time of the request.
Any ERS request submitted must be accompanied with the required documentation and the good faith payment. The supplier must explain and document the need for an extended repayment schedule. An ERS may be established to recover all or part of an overpayment. Any approved ERS will run from the date of the initial demand letter.
Each request must include:
- A cover letter formally requesting an Extended Repayment Schedule. This letter must contain the following elements:
- A list of all debts included in the ERS. This is most easily accomplished by attaching the first page of initial demand letter received for each debt. A spreadsheet containing all Document Control Numbers (DCNs) from initial demand letter(s) may also be submitted
- Number of months supplier requests to repay the debt. Must be between 6 and 60 months
- Amount of proposed monthly payments
- A signed proposed Amortization Schedule that includes above number of months and proposed monthly payments
- Note: Remember that interest will continue to accrue on the debt. Adjust number and/or amount of payments accordingly
- A check for the good faith payment. In Subject Line, include "ERS Request"
- Note: Requests for an ERS that are not accompanied by a check for the good faith payment may be considered invalid
- A completed copy of Extended Repayment Schedule documentation list. See the Refunds/Overpayments Forms webpage
- A copy of each document referenced on Extended Repayment Schedule documentation list.
- Note: Failure to include all required documents with ERS request may result in processing delays or invalidation of request. It is in supplier's best interest to provide all documents at time of request
An ERS request may be reviewed at any time the overpayment is outstanding.
Submission
Include the completed, appropriate form with the defined ERS documentation. Access the Extended Repayment Schedule from the Refunds/Overpayments Forms webpage.
Mail the ERS request and the original check to Noridian.
Fax a copy of the entire request, including a photocopy of the check to Noridian. Attention: DME RCP: Extended Repayment Schedule.
After a debt has been referred to the Department of Treasury for collection, request ERS through the Department of Treasury.
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