Rate of Interest

30.2 - Rate of Interest (Rev. 30, 09-05-03) The interest rate on overpayments and underpayments will be the prevailing rate(s) specified in bulletins issued 8020.20 of the Treasury Fiscal Requirements Manual. This rate is the higher of the rate as fixed by the Secretary of the Treasury after taking into consideration private consumer rates of interest or the current value of funds rate. If an HCPP signs a repayment agreement with CMS for the overpayment: • The rate of interest specified in the agreement will continue unchanged if there is no default; and • Interest on the balance of the debt may be changed to the prevailing rate if: 1. The HCPP defaults on an installment; and 2. The prevailing rate in effect on the date the installment becomes overdue is higher than the rate specified in the agreement.