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

Issue Date: August 01, 2017

Program Area: Vendor Management, Payments, and Collections (VMPC)

Question: What penalties are assessed on outstanding Invoices and how often are they assessed?

Answer: If an Issuer's payment is late, the payment can accrue interest and adminstrative charges.As of July 18, 2018, CMS assesses simple interest at the rate of 10.25 percent on the unpaid balance. Interest is assessed 30 calendar days from the date of the Initial Invoice for each 30-day period payment is delayed. In addition, an administrative fee cost of $15 will be added to the unpaid balance.

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