Requests from Terminated Providers or Debts that are Pending Referral to Department of

50.6 - Requests from Terminated Providers or Debts that are Pending Referral to Department of Treasury (Rev. 12346; Issued:11-01-23; Effective:10-30-23; Implementation:10-30-23) When approving/denying an Extended Repayment Schedule (ERS) request, the contractor is making a subjective decision concerning the provider’s ability to repay. All complete ERS requests shall be reviewed by the contractor. This includes ERS requests from terminated providers and requests received for debts where the contractor has already sent an Intent to Refer (ITR) letter. Terminated Providers: If a terminated provider submits an ERS request, the MAC shall consider the provider’s ability to repay the debt over time. The contractor shall refer requests to the RO if it determines that an ERS is in the best interest of the Medicare program prior to denying the request, based on the requirements in section 50.3. In addition, if the contractor has a reason to believe that a provider will terminate the program, they should research this issue and refer the request to the RO for a decision. Debts that are Pending Referral to Department of Treasury: If a contractor has sent an ITR letter and the contractor has received an ERS request prior to referral, the contractor shall review and process the request first to determine eligibility. If the request is approved, the contractor shall establish the ERS and shall not refer the debt to Treasury. If denying an ERS request will result in the immediate referral of an active provider to the Department of Treasury, the contractor shall contact the RO to determine if an alternative exists. It is preferred to recoup payments from present and future claims payments. If recoupment of payments is not possible, the contractor shall accept monthly checks in the full amount agreed. If the provider misses one payment (delinquent loan status), the contractor shall continue with normal debt collection (including discontinuing the ERS, pursuing the full balance owed, and/or referral to Treasury). NOTE: The requirements set forth in the Debt Collection Improvement Act of 1996 still apply.