[Code of Federal Regulations] [Title 42, Volume 2] [Revised as of October 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 42CFR405.355] [Page 98] TITLE 42--PUBLIC HEALTH HUMAN SERVICES PART 405_FEDERAL HEALTH INSURANCE FOR THE AGED AND DISABLED--Table of Contents Subpart C_Suspension of Payment, Recovery of Overpayments, and Repayment of Scholarships and Loans Sec. 405.355 Waiver of adjustment or recovery. (a) The provisions of Sec. 405.352 may not be applied and there may be no adjustment or recovery of an incorrect payment (i.e., a payment made under Sec. 405.350(a) or Sec. 405.350(b)) in any case where such incorrect payment has been made with respect to an individual who is without fault, or where such adjustment or recovery would be made by decreasing payments to which another person who is without fault is entitled as provided in section 1870(b) of the Act where such adjustment or recovery would defeat the purpose of title II or title XVIII of the Act or would be against equity and good conscience. (See 20 CFR 404.509 and 404.512.) (b) Adjustment or recovery of an incorrect payment (or only such part of an incorrect payment as may be determined to be inconsistent with the purposes of Title XVIII of the Act) against an individual who is without fault shall be deemed to be against equity and good conscience if the determination that such payment was incorrect was made subsequent to the third year following the year in which notice of such payment was sent to such individual. (See Sec. Sec. 405.330-405.332 for conditions under which payment may be made for items or services furnished after October 30, 1972 which are noncovered by reasons of Sec. 405.310 (g) and (k).) [41 FR 1493, Jan. 8, 1976. Redesignated at 42 FR 52826, Sept. 30, 1977]