Revenue Cycle

Avoiding interest rates: Pay first, appeal after

Recovery Auditor Report, February 4, 2010

CMS released a transmittal in mid-January instructing Medicare contractors to implement an interest rate of 11.25% for overpayments and underpayments. This interest rate, which has risen from the 10.875% implemented from October 22, 2009 to January 24, 2010, could have an additional financial impact for providers during the RAC program.    

The Revenue Cycle Institute developed its own set of FAQs with some help from HCPro’s regulatory specialist, Debbie Mackaman, RHIA, CHCO.

Q. How is the interest rate calculated?

A. The interest rate is calculated in 30-day periods.

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