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March 10, 2017

CGS Overpayment Demand Letter is Required to Appeal Decisions from the Supplemental Medical Review Contractor (SMRC) and the Recovery Audit (RA) Contractor

When a SMRC or RA contractor identifies improper payments, they notify the provider via a determination letter (also referred to as a review results letter).  They also notify CGS to initiate the overpayment process.  Once CGS is notified, the claim is adjusted and a remittance advice and overpayment demand letter is generated.  At that time, if you disagree with the SMRC or RA decision, you may request a redetermination (first level of appeal) within 120 days from the date of the CGS demand letter or remittance advice. It has come to our attention that some providers are requesting an appeal upon receipt of the SMRC and RA determination letter and prior to the claim adjustment.

If a provider decides to appeal the denial decision, they MUST wait until the CGS demand letter or remittance advice is received.  If an appeal request is submitted prior to the CGS demand letter being issued, it cannot be processed as an appeal since the overpayment does not yet exist.

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