How To Satisfy An Overpayment - New 09/16/08
This document includes information about the following:
- How is an overpayment established?
- What is the official means of communication by CMS' RDS Center regarding overpayments?
- When can a payment be sent to CMS' RDS Center to satisfy an overpayment?
- How can I tell if my payment has been received by CMS' RDS Center?
- What happens after my overpayment is reduced or satisfied?
- What method of payment must I use to satisfy my overpayment?
- Where do I send a payment to satisfy an overpayment?
- What information should I include with my payment?
- If I have received an overpayment notification e-mail and I have requested an appeal, do I still have to immediately remit payment?
- How do I request a W - 9 for tax purposes from CMS' RDS Center?
- What is CMS' EIN?
- Will interest be assessed on my overpayment?
- May I remit payment to an address other than a PO Box?
- If there is an overpayment, can it be reduced or satisfied by a positive payment request on another application?
- What happens if I already mailed my check for an overpayment and then I receive the overpayment notification e-mail that the overpayment has been reduced or satisfied?
- Will CMS' RDS Center hold my payment request(s) if I have an overpayment with a balance due?
- If a Plan Sponsor has an overpayment on an application, when will the Plan Sponsor receive an overpayment notification e-mail?
- What happens if I do not satisfy my overpayment?
How is an overpayment established?
At reconciliation, if the sum of actual allowable retiree costs (ARC) attributable to gross costs between the cost threshold and cost limit, submitted with the reconciliation payment request, was less than the sum of ARC attributable to such costs, submitted with the interim payment request(s), the amount of the retiree subsidies received from the interim payments was greater than what should have been received. In such cases, an overpayment exists.
If there is an overpayment, then the reconciliation payment request total will be a negative number in the net subsidy amount column. Negative amounts are indicated in parentheses with red font.
If a Plan Sponsor fails to meet the reconciliation deadline for the application(s) and has received interim payments, the sum of those payments will become overpayments. Note: CMS will initiate immediate overpayment recovery action.
What is the official means of communication by CMS' RDS Center regarding overpayments?
CMS' RDS Center's official means of communication to the Plan Sponsor is through e-mail.
CMS' RDS Center will send an overpayment notification e-mail to the Plan Sponsor's Authorized Representative, Account Manager, and Designees with Appeal privileges.
It is imperative that all RDS Secure Web Site participants take the necessary steps to ensure that all e-mails will be received and are not marked as "spam" or automatically deleted for any other reason. Please update your e-mail address book appropriately.
E-mails for overpayment notification will come from the e-mail address: rdspayment@cms.hhs.gov.
Note: E-mails should not be sent to this address. This is a notification-only e-mail address and incoming e-mail is not monitored. Sending an e-mail to this address will not result in a response. Any assistance required by e-mail should be directed to CMS' RDS Center Help Line.
When can a payment be sent to CMS' RDS Center to satisfy an overpayment?
A payment may be sent to CMS' RDS Center once the Plan Sponsor is aware that an overpayment has occurred. An overpayment notification e-mail stating a balance is due will be sent by CMS' RDS Center. A payment is due immediately upon receipt of the overpayment notification e-mail.
For information about CMS' RDS Center overpayment related e-mails, go to: What is the official means of communication by CMS' RDS Center regarding overpayments?
How can I tell if my payment has been received by CMS' RDS Center?
CMS' RDS Center will send an acknowledgement e-mail to the Authorized Representative and the Account Manager to confirm the receipt of your payment, once the check or money order has been received.
For information about CMS' RDS Center overpayment related e-mails, go to: What is the official means of communication by CMS' RDS Center regarding overpayments?
What happens after my overpayment is reduced or satisfied?
CMS' RDS Center will send the Authorized Representative, Account Manager, and Designees with Appeal privileges, an overpayment notification of change e-mail to inform the Plan Sponsor of recent activity for a particular application including updated balance information.
For information about CMS' RDS Center overpayment related e-mails, go to: What is the official means of communication by CMS' RDS Center regarding overpayments?
What method of payment must I use to satisfy my overpayment?
A Plan Sponsor may submit a payment in the form of a check or money order. No other methods of payment will be accepted by CMS' RDS Center.
Please make the check or money order payable to: Centers for Medicare & Medicaid Services.
For more information on using a positive payment to satisfy an overpayment, go to: If there is an overpayment, can it be reduced or satisfied by a positive payment request on another application?
Where do I send a payment to satisfy an overpayment?
Please mail your check or money order to the following address:
Retiree Drug Subsidy Center
Attn: Payments
PO Box 6865
Towson, MD 21204
What information should I include with my payment?
Please include the Plan Sponsor ID on the check or money order.
If I have received an overpayment notification e-mail and I have requested an appeal, do I still have to immediately remit payment?
Yes. Until an appeal decision is made by CMS' RDS Center, the overpayment notification e-mail is considered the final reconciliation determination, and payment must be remitted based on such determination.
How do I request a W - 9 for tax purposes from CMS' RDS Center?
Please contact CMS' RDS Center Help Line to request a W-9.
What is CMS' EIN?
Use the following EIN when remitting payment to CMS: 52-0883104.
Will interest be assessed on my overpayment?
CMS reserves the right to assess interest on outstanding overpayment amounts. In such cases, Plan Sponsors will be informed before interest is assessed and notified of the interest rate.
May I remit payment to an address other than a PO Box?
No. This is the only mailing address for remitting payment to CMS' RDS Center. However, Plan Sponsors also have the option of sending payments using certified mail through the United States Postal Service (USPS).
Note: Federal Express and UPS will not deliver certified mail to a PO Box address.
If there is an overpayment, can it be reduced or satisfied by a positive payment request on another application?
Yes. CMS' RDS Center will deduct an overpayment from any interim and/or final positive payment request on another application that is available at the time the overpayment is being processed. The positive payment request will be reduced by the amount of the overpayment and if the amount of the positive payment request does not satisfy the entire overpayment, the Plan Sponsor will receive an overpayment notification of change e-mail for the remaining balance.
Note: Payment is due immediately once it is known that an overpayment has occurred.
What happens if I already mailed my check for an overpayment and then I receive the overpayment notification e-mail that the overpayment has been reduced or satisfied?
CMS' RDS Center will send an acknowledgement e-mail to the Authorized Representative and the Account Manager the day the payment is received, and will refund the monies. The payment will be satisfied by Electronic Funds Transfer (EFT) to the account specified on the application. A refund notification e-mail will be sent to the Authorized Representative and the Account Manager to inform them that the monies have been returned.
Will CMS' RDS Center hold my payment request(s) if I have an overpayment with a balance due?
Yes. It is the policy of CMS' RDS Center to hold a Plan Sponsor's positive payment request(s), either interim or final, if there is an overpayment balance due in excess of the amount of the positive payment request(s). After the reduction of the overpayment is applied, an overpayment notice of change e-mail will be sent to inform the Plan Sponsor.
If a Plan Sponsor has an overpayment on an application, when will the Plan Sponsor receive an overpayment notification e-mail?
An overpayment notification e-mail will be sent by CMS' RDS Center as soon as the reconciliation determination is made.
What happens if I do not satisfy my overpayment?
CMS reserves the right to refer outstanding amounts to the U.S. Department of Treasury for collection.
