Medicare Financial Management Manual (Pub. 100-06), Ch. 3 § 110.11
Recording Overpayment Cases in Which the Provider is Not Liable— Part
110.11 – Recording Overpayment Cases in Which the Provider is Not Liable— Part
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(Rev. 13183; Issued: 04-24-25; Effective: 05-27-25; Implementation: 05-27-25)
If a provider is relieved of liability for refunding an overpayment, and an adjustment bill is required in
accordance with Medicare Bill Processing, Chapter 1, General Billing Requirements, the contractor
shall treat the charges involved in the year-end cost report as though they were covered; i.e., make
provision to assure that the overpaid amount is not recovered from the provider at the time of final cost
settlement.
If the contractor has a system capable of preventing year-end recovery from the provider, where it was
relieved of liability for refunding an overpayment, it need not maintain an additional record of the case.