Working With the CMS Office and CMS Counsel

140.6.1 - Working With the CMS Office and CMS Counsel (Rev. 13825; Issued: 06-11-26; Effective: 07-13-26; Implementation: 07-13-26) The Contractor notifies the servicing CMS Office or the CMS Counsel's Office immediately after it receives information that a provider has filed for bankruptcy. It is essential for the Contractor to obtain information on all Part A, Part B, or Durable Medical Equipment Administrative Contractor entities involved in the bankruptcy, including Medicare identifying information, such as provider and supplier numbers. If the Contractor has difficulty obtaining this information, it will consult with the CMS Office. After gathering the information described in §140.4.2, the Contractor sends to the servicing CMS Office. The Contractor shall discuss with the CMS Office or CMS Counsel whether it should put payments in an administrative freeze (a holding account) until Medicare has time to assess its position in the bankruptcy. Also, the CMS Office or CMS Counsel will determine when the proof of claim is due and whether the CMS Office or CMS Counsel will need additional information to prepare the proof of claim. The Contractor shall share all new information regarding the provider's overpayments and underpayments, cost report settlements, etc. with the CMS Office or CMS Counsel if asked. The Contractor cannot take any further steps without obtaining the advice of the CMS Office and CMS Counsel. As the bankruptcy progresses, the CMS Office and Counsel may ask the Contractor to expedite settlement of cost reports, update the CMS Counsel on provider overpayments or underpayments, and provide Counsel with assistance on all aspects of the bankruptcy. As bankruptcy cases often have short deadlines for filing pleadings and other documents, requests from the CMS Office or CMS Counsel must have the highest priority in the workload, to protect Trust Fund assets.