Medicare Claims Processing Manual (Pub. 100-04), Ch. 12 § 90.4.4
Payment
90.4.4 - Payment
(Rev. 2040, Issued: 08-27-10, Effective: 01-01-11 and 04-04-11, Implementation: 01-03-11
for the claim identification of the incentive and 04-04-11 for full implementation)
The incentive payment is 10 percent of the amount actually paid, not the approved amount.
A/B MACs (B) pay the incentive payment for services identified on either assigned or
unassigned claims.
They do not include the incentive payment with each claim payment. A/B MACs (B) should:
• Establish a quarterly schedule for issuing incentive payments. These payments are
taxable and must be reported to the IRS; and
• Prepare a special incentive remittance to accompany each payment. Include a line-item
for each assigned claim represented in the incentive check and a “summary” item
showing the number of unassigned claims represented. Claims should be identified as
HPSA physician, Scarcity, HSIP and/or PCIP in the summary. The sum of the line-
items and the “summary” item should equal the amount of the check.