[Code of Federal Regulations]

[Title 42, Volume 3]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR489.41]



[Page 952]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 489_PROVIDER AGREEMENTS AND SUPPLIER APPROVAL--Table of Contents

 

               Subpart D_Handling of Incorrect Collections

 

Sec. 489.41  Timing and methods of handling.



    (a) Refund. Prompt refund to the beneficiary or other person is the 

preferred method of handling incorrect collections.

    (b) Setting aside. If the provider cannot refund within 60 days from 

the date on the notice of incorrect collection, it must set aside an 

amount, equal to the amount incorrectly collected, in a separate account 

identified as to the individual to whom the payment is due. This amount 

incorrectly collected must be carried on the provider's records in this 

manner until final disposition is made in accordance with the applicable 

State law.

    (c) Notice to, and action by, intermediary. (1) The provider must 

notify the intermediary of the refund or setting aside required under 

paragraphs (a) and (b) of this section.

    (2) If the provider fails to refund or set aside the required 

amounts, they may be offset against amounts otherwise due the provider.