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

Issue Date: August 01, 2017

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

Question: Are there penalties associated with an ACH Debit Block?

Answer: There are no penalties associated with an ACH Debit Block unless unless the payment was late due to the debit block. If the Issuer's payment is late, interest and administrative charges will accrue. Interest and Administrative Fees: CMS assesses simple interest at the rate of 10 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 of $15 will be added to the unpaid balance.

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