what is demanded debt - immediate offset

Q. Can I request early or immediate offset of a demanded debt?

A. Yes. When you receive an overpayment demand letter indicating a refund is due, you can request immediate offset of the debt in writing.

The immediate recoupment process allows providers to request that recoupment begin prior to day 41. Providers who elect this option may avoid paying interest if the overpayment is recouped in full prior to day 31. The immediate recoupment process does not terminate appeal rights.
An immediate offset is considered a voluntary repayment. Keep in mind a request for an immediate offset will occur only as funds become available. Providers who choose immediate recoupment must do so in writing. However, a provider can terminate the immediate recoupment process at any time.
The advantages of utilizing this new process include:

§ Avoiding the possibility of checks “crossing in the mail”
§ Cost savings associated with check fees and postage
§ Avoiding potential interest accrual due to late receipt of refund
To request immediate offset of demanded debt, complete the Medicare Debt Recovery: Request for Immediate Offset form  and fax the form to:
Part A Debt Recovery (904) 361-0320 or Part B Debt Recovery (904) 361-0444.
Note: The fax numbers indicated are for immediate offsets of a demanded debt only. Any other financial concerns should be sent in writing to the appropriate Part A or Part B Medicare department.
To ensure your request is handled promptly, all requests must include:
• Date of Request
• Which option the provider is requesting?
• One-time request for immediate recoupment of a current overpayment letter (All ARs in the overpayment letter will be placed on immediate offset)
• Request for immediate recoupment of a current overpayment letter and all future overpayments (Future immediate offset requests must include a request for immediate offset of a current overpayment letter.)

• Letter Number
• Provider Name
• Provider Medicare number and/ or national provider identifier
• Signature of provider or Chief Financial Officer
• Telephone number

• The request must specifically state that the provider understands that they are waiving potential receipt of interest payment pursuant to Section 1893(f)(2) for the overpayments.
Incomplete requests may delay processing, which can cause interest to accrue on the debt. If there is a remaining principal balance after the initial immediate recoupment request has been processed, attempts to recoup immediately will continue. Interest will accrue from the date of the demand letter if a principal balance remains after 30 days from the date of the demand letter and further collection activities will be pursued. As with all transactions of this nature, the sooner you make the decision to request an immediate offset, the more likely the offset will activate prior to interest accrual.
Please indicate Immediate Offset on the fax cover sheet.