Skip to main content
U.S. flag

An official website of the United States government

Return to Search

New Thresholds for 2nd Demand Letter for Physicians/Suppliers

CMS currently utilizes a threshold of $50 when issuing
a 2nd demand letter to physicians/suppliers. However, CMS must send an intent to refer
letter for referral to the Department of Treasury for all debts greater than or equal to $25.
This created an inconsistency in the policies and the number of demand letters providers
received. To address the inconsistency, this change request changes the threshold for
issuing a 2nd demand letter to $10. Overpayments greater than or equal to $10 will now
receive a 2nd demand letter. If the debt is eligible for referral to the Department of
Treasury and if the overpayment is greater than $25 it shall receive an intent to refer letter
following existing policies.

Download the Guidance Document

Issued by: Centers for Medicare & Medicaid Services (CMS)

Issue Date: August 12, 2005

DISCLAIMER: The contents of this database lack the force and effect of law, except as authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically incorporated into a contract. The Department may not cite, use, or rely on any guidance that is not posted on the guidance repository, except to establish historical facts.