Compromise of Claim, or Suspension or Termination of Collection, Under the

50.3 – Compromise of Claim, or Suspension or Termination of Collection, Under the Federal Claims Collection Act (31 U.S.C. § 3711) (Rev. 12438; Issued: 01-04-24; Effective: 02-06-24; Implementation: 02-06-24) CMS may agree to compromise a claim for reimbursement under the FCCA, if: a) The individual does not have the present or prospective ability to pay the full amount of the claim within a reasonable period; b) It is determined that it would be difficult to prevail in this case before a court of law; or c) The cost of collecting the claim is likely to be more than the amount collected. Under the FCCA, CMS has delegated authority to compromise claims up to $100,000. The Department of Justice (DOJ) has the authority to compromise claims over $100,000. CMS works with DOJ, through HHS OGC, regarding compromise matters where the debt, exclusive of interest, is over $100,000. Legal clearance must be obtained from HHS OGC for proposed compromises if the amount of the debt is $100,000 or less (exclusive of interest, penalties, and administrative costs, and after all partial payments and collections have been deducted, and the difference between the amount offered by the debtor and the amount owed the Government is more than $25,000). Under the FCCA, agencies have the authority to compromise claims where: a) The cost of collection does not justify the enforced collection of the full amount of the claim; b) There is an inability to pay within a reasonable time on the part of the individual against whom the claim is made; or c) The chances of successful litigation are questionable, making it advisable to seek a compromise settlement. These criteria are provided here for MSP Contractor information, since only CMS staff, not MSP Contractors, are permitted to compromise Medicare claims. When a beneficiary agrees to a compromise settlement under the FCCA, the beneficiary also agrees not to appeal the matter further.