Action by Incoming FI

50.2 – Action by Incoming FI (Rev. 29, 01-02-04) The incoming FI is responsible for effectuating final settlements for the cost report periods after the change of FI becomes effective. If the FI receives a cost report from a prior period it should forward it to the outgoing FI to make the final settlement. If the outgoing FI is no longer participating in the Medicare program, the incoming FI shall contact the RO for further instructions. After the outgoing FI has completed its review of the cost report, it notifies the incoming FI whether the cost report is acceptable, and the final settlement. The incoming FI, in accordance with Ch. 4, §40, disposes of funds withheld during the suspension of interim payments (for an unfiled cost report) and initiates recoupment by the withhold of interim payments if necessary. While overpayments are outstanding at the outgoing FI, the incoming FI must keep the outgoing FI up to date regarding the provider’s location and participation in the Medicare program. If the incoming FI learns of a provider’s termination from the Medicare program it must notify the outgoing FI so that it may act accordingly. A. Reduction of Outstanding Overpayment Any actions taken by the incoming FI which reduce or eliminate the overpayment made by the outgoing FI shall be communicated, in writing, to the outgoing FI within 5 working days after the month in which the actions occurred. In addition, unless the provider indicates to the contrary, any collections or payment are applied first to the earliest overpayment. See Chapter 5, Financial Reporting for instructions on transferring any payment(s) between FIs.