Industry News

CMS Establishes a New Interest Rate for Medicare Overpayments and Underpayments

Richard P. Kusserow | April 2012

The Centers for Medicare & Medicaid Services (CMS) recently updated the interest rate for overpayments and underpayments in the Medicare program. Beginning April 18, Medicare contractors will apply a 10.875 percent interest rate to all Medicare overpayments and underpayments.  The new interest rate is an increase from the 10.50 percent rate that CMS established in January 2012.

The CMS transmittal (207) on the new interest rate is available at:

http://cms.gov/Regulations-and-Guidance/Guidance/Transmittals/Downloads/R207FM.pdf.


Centers for Medicare & Medicaid Services.  “Notice of New Interest Rate for Medicare Overpayments and Underpayments – 3rd Notification for FY 2012.”  Transmittal 207.  11 Apr. 2012.

About the Author

Richard P. Kusserow established Strategic Management Services, LLC, after retiring from being the DHHS Inspector General, and has assisted over 3,000 health care organizations and entities in developing, implementing and assessing compliance programs.