Effect of New Owner’s Rejection of Assignment of the Medicare Provider

130.3 – Effect of New Owner’s Rejection of Assignment of the Medicare Provider Agreement (Rev. 13235; Issued: 05-22-25; Effective: 06-23-25; Implementation: 06-23-25) Assignment of Medicare Provider Agreement: If the new owner rejects the assignment of the provider agreement, there is a voluntary termination of the old owners provider agreement on the date of the sale or other transfer. There would be no CHOW of the Medicare agreement, and the previous owner would still be responsible for any outstanding overpayments. Contractors follow normal collection processes to recoup any outstanding debt from the previous owner. If the new owner wants to participate in the Medicare Program, they must apply as a new provider, under a new Medicare Provider Agreement. The new provider will not be eligible to receive Medicare reimbursement for services rendered to beneficiaries before the date CMS approves the new application. For providers which must undergo a compliance survey, that survey cannot take place until after the date on which the old owner terminates its Medicare participation and the new owner has begun providing services. In the case of the rejection of the provider agreement, the new owner will not be able to participate in the Medicare Program until a valid provider agreement is issued from CMS. The Contractor seeks recovery of all overpayments and issues all underpayments to the last owner of record under the terminated provider agreement.