Medicare Financial Management Manual (Pub. 100-06), Ch. 3 § 40.1
Demand Letter Contents
40.1 – Demand Letter Contents
(Rev. 12946, Issued:11-08-24; Effective: 12-10-24; Implementation:12-10-24)
The Contractor will demand an overpayment resulting from a claims adjustment if the claims
adjustment has had no recoupment in the past 60 days.
The demand letter shall include the following information:
• That an overpayment was made;
• That interest will begin to accrue if the overpayment is not paid in full within 30 days;
• The name and Patient Control Number (PCN) of the beneficiary involved will be included in the
spreadsheet attachment;
• The dates and types of services for which the overpayment was made to include sufficient
information for the provider to identify the overpayment;
• How the overpayment was calculated;
• Why it is liable for recovery of overpayment (i.e., the reasons for finding the provider at fault);
• That recoupment of the overpayment from all available payments will occur on day 16 from the
date of the Demand Letter;
• Rebuttal language shall be included;
• A reference to the Appeals rights in the remittance advice.