Policy Updates

IPPS Cost Report: CMS Extends Part A Overpayment Recoupment Default Date

By CLV IntelligenceSource published August 10, 2026

CMS Transmittal R13899FM (CR 14457) extends the default recoupment date for Part A cost report overpayments, effective January 4, 2027.

Action required by

January 4, 2027

Review the Action Required section below and ensure your team has completed all compliance steps before this date.

CMS issued Transmittal R13899FM on August 7, 2026, under Change Request 14457 and Publication 100-06, extending the default recoupment date for Part A cost report overpayments and revising the Medicaid check criterion for debts submitted for close-out. This is a Final Transmittal with an implementation date of January 4, 2027. The single most important compliance implication is that facilities managing open Part A cost report overpayment accounts must verify their internal recoupment tracking systems and MAC workflows are aligned to the new default date before the January 4, 2027 go-live.

Regulatory Background

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Quick answers

Does the extended default recoupment date under CR 14457 apply automatically to all open Part A cost report overpayments, or only to new overpayments identified after January 4, 2027?

The source document for Transmittal R13899FM does not specify whether the extended default recoupment date applies retroactively to existing open accounts or prospectively to new determinations made on or after January 4, 2027. Facilities should contact their MAC directly to clarify the scope of application under CR 14457 before the implementation date.

What is the Medicaid check criterion revision in CR 14457, and which cost report debts does it affect at close-out?

The source document identifies that the Medicaid check criterion for debts submitted for close-out is being revised under CR 14457 (Publication 100-06), but does not detail the specific criteria being changed. Facilities with dual-eligible populations or Medicaid crossover cost report activity should retrieve the full CR 14457 instructions from the source URL to determine how the revised criterion applies to their close-out submissions.

Content summarized from publicly available federal publications including CMS, MAC contractors, and the Federal Register. CLV Intelligence is not affiliated with or endorsed by any government agency. This is not legal or medical advice.