State Operations Manual (Pub. 100-07), Ch. 10 § 10005.24
Offsets
10005.24 - Offsets
(Rev. 221; Issued: 05-10-24; Effective: 05-10-24; Implemetation:05-10-24)
If payment was not received by the established due date, CMS will collect the CMP through
offset of monies then owed or later owing to the HHA or hospice program. To initiate such an
offset, CMS will instruct the appropriate Medicare Administrative Contractors (MAC), when
applicable, the State Medicaid agencies, to deduct unpaid CMP balances from any money
owed to the HHA or hospice program. To maintain consistency in recovering a CMP
among other types of providers who are subject to a CMP, the amount of any penalty can be
deducted (offset) from any sum CMS or the State Medicaid Agency owes to the HHA or
hospice program.
Interest would be assessed on the unpaid balance of the penalty beginning on the due date.
The rate of interest assessed on any unpaid balance would be based on the Medicare interest
rate published quarterly in the Federal Register, as specified in §405.378(d). CMS
Locations are notified by CMS OFM of the current interest rate and any changes.