The Noridian Recoupment Team receives referrals for refunds from the Supplier Contact Center, Redeterminations, Recovery Auditor (formerly known as the RAC), CERT and the Zone Program Integrity Contractor (ZPIC). If, after examining the referral, the Recoupment Team determines an overpayment has been made to a supplier, Noridian sends the supplier a letter requesting a refund.

After 30 days, if the supplier has not responded to the letter, the Recoupment Team applies one 30-day period of interest to the overpayment.

If no payment is received by the 41st day, the Recoupment Team begins the offset process, which allows Medicare to withhold payments to the supplier. If the offset does not compensate for the overpayment, the Recoupment Team makes a telephone call to the supplier to request a refund.

Note: If an offset request is received after interest begins to accrue, the interest will not be refunded. If, after 10 additional days, the supplier has not contacted our office regarding the overpayment, offset withholdings are initiated.

Noridian sends an Intent to Refer (ITR) letter to the supplier, stating that the supplier has 60 days to make a full refund or request a formal repayment schedule. Otherwise, the case will be transferred to the Department of the Treasury's Debt Collection Center (DCC).

A copy of the ITR letter is sent to the surety bond company. If the overpayment is still outstanding 30 days following the ITR, repayment of the overpayment will be requested from the surety bond company. A follow-up phone call is made to the supplier at this time. 

Referral of Delinquent Debt

If the overpayment becomes 180 days delinquent and has not been refunded in full (principal plus interest), the debt will be referred to the Department of Treasury's Debt Collection Center (DCC) for cross servicing and offset of federal overpayments. Various tools used by the Department of Treasury can be used to attempt collection of the debt from the supplier, including the involvement of a private collection agency and the Treasury Offset Program (TOP). Types of payments that can be offset include tax refunds, vendor payments, and benefit payments, with certain restrictions. Extended Repayment Agreements for debts that have been referred may be discussed and negotiated with the Department of Treasury.

Last Updated Jun 16, 2016