Action By Outgoing Contractor

50.1 Action By Outgoing Contractor (Rev. 12946, Issued:11-08-24; Effective: 12-10-24; Implementation:12-10-24) The outgoing Contractor is responsible for effectuating final settlement for the cost report periods during which it serviced the provider. It issues the reminder letter to ensure the timely receipt of the cost report as well as any NPRs and demand letters. The outgoing Contractor is also responsible for assuring that the incoming Contractor is aware of the outstanding overpayment and that recoupment is initiated by the withholding of interim payments, if necessary. If the overpayment remains uncollected, the outgoing Contractor is responsible for initiating the withholding of Title XIX payments (Medicaid) and for referring the overpayment to the Department of Treasury. The outgoing Contractor must copy the incoming Contractor on all correspondence with the provider to ensure a timely collection process. A. Notification to Incoming Contractor When the outgoing Contractor is notified by the RO that the provider's request for a change of Contractor has been approved, it shall notify the incoming Contractor in writing of all outstanding program overpayments. It shall include: • The cost reporting period, • The date the overpayment was determined. • Explanation of the type of overpayment, e.g., cost report overpayment - desk review, cost report overpayment - audit. • The current status of collection action, including any withhold that is currently in place to recoup the overpayment, • The original balance of the overpayment and the current principal and interest balance of the overpayment. • The outgoing Contractor should also notify the incoming Contractor of future settlements that will be occurring and of any unfiled cost reports. B. Notice of Intent to Suspend Interim Payments If at the time of the change of Contractor, the outgoing Contractor is recouping an overpayment by the withholding of interim payments the incoming Contractor will continue the withhold. The outgoing Contractor must notify the provider that the withhold will be continued by the incoming Contractor until the overpayment is liquidated or an acceptable ERS is approved. In addition, the outgoing Contractor must notify the incoming Contractor of the details of the withhold. If after the change of Contractor occurs the outgoing Contractor determines that an overpayment exists, the outgoing Contractor must notify the provider in accordance with normal procedures. The current Contractor should receive a copy of all NPRs and demand letters. The outgoing Contractor must contact the current Contractor to make sure that recoupment begins when necessary.