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Overpayment Recovery

If you receive overpayment, you are obligated to refund the money to Medicare. Click below to learn more.

What Is an Overpayment?

Overpayments are Medicare payments to a supplier in excess of amounts due and payable under the statute and regulations. Once a determination of an overpayment has been made, the amount is considered a debt owed by the debtor to the United States Government. CGS must attempt recovery of the overpayment in accordance with the Centers for Medicare & Medicaid Services (CMS) regulations.

CMS requires CGS to request refunds on non-MSP overpayments of $25 or more. If a supplier owes several small overpayments, each of which is less than $25, the total of the overpayments will be added together, and a demand letter will be issued. The $25 tolerance does not apply to MSP overpayments.

There are two types of voluntary refunds:

  • Non-MSP – where Medicare fee-for-service is primary, and
  • MSP – where Medicare fee-for-service is secondary
  • If you need help deciding if Medicare should have paid as primary or secondary, see our MSP section.

The purpose of Overpayment Recovery is to recover money overpaid in error to a Medicare beneficiary or supplier. The funds can be recovered voluntarily from the beneficiary or supplier through a voluntary payment or through a demand letter.

Overpayment Refund Requests & Timelines

CGS can initiate an overpayment refund request (demand) or the supplier can voluntarily issue a refund (voluntary refund).
When CGS determines that a supplier has been overpaid, we'll send a refund request through an overpayment demand letter. This letter includes a document control number (DCN) which must be included in all communication with us to ensure accurate tracking and application of the refund.

Refund Timelines

You have 30 days from the date of the demand letter to refund CGS. If we don't receive your payment within 30 days, interest begins to accrue on the refund amount. If we still haven't received full payment by the 40th day, the recoupment process will begin in the form of an offset. Current and future payments will be offset until the overpayment is completely recouped.

Debt Collections

If CGS has not received requested payments by 120 days after the initial demand letter the debt will then be referred to the Department of Treasury.

How Do I Refund an Overpayment?

You can return Medicare overpayments in the following ways:

Immediate Offset

If you receive a demand letter and want CGS to take the overpayment out of your future Medicare payments, submit the Offset Request FormPDF. CGS will then reduce your next payments until the overpayment is repaid.

Overpayment Recovery Request

If you identify an overpayment, you can start the recovery process by submitting the Overpayment Recovery Request FormPDF. After CGS processes the form, CGS will issue a demand letter.

Examples when to use this form:

  • Items are returned
  • Billing mistake happened
  • Medicare Secondary Payer (MSP) situations caused an overpayment

Voluntary Overpayment Refund Request (with check)

You may also repay the overpayment voluntarily by sending CGS a check along with the Voluntary Overpayment Refund FormPDF

  • If you receive a demand letter, include a copy of it with your check so that we apply the refund correctly.
  • For Medicare Secondary Payer (MSP) related overpayments, include a copy of primary insurance's explanation of benefits (EOB).

If your check doesn't fully satisfy the overpayment, the same rules will apply regarding the overpayment demand letters. In addition, the same interest and offset rules will apply if the overpayment is not satisfied in a timely manner.

Please allow CGS up to 60 days from the date of receipt to process voluntary refunds and up to 20 days to process demand-related refunds.

Form Submission Options

Offset Request FormPDF (offset)

Overpayment Recovery Request FormPDF (initiate the overpayment process)

  • Online: myCGS DME® Web Portal
  • Fax: 615.782.4508
  • Standard Mail:

    CGS Administrators, LLC – DME JB
    PO Box 953479
    St. Louis, MO 63195-3479

  • Overnight Delivery:

    CGS Administrators, LLC – DME JB
    Lockbox 953479
    3180 Rider Trail South
    SL-MO-R1LB
    Earth City, MO 63045

Voluntary Overpayment Refund FormPDF (return overpayment by check)

  • Standard Mail:

    CGS Administrators, LLC – DME JB
    PO Box 953479
    St. Louis, MO 63195-3479

  • Overnight Delivery:

    CGS Administrators, LLC – DME JB
    Lockbox 953479
    3180 Rider Trail South
    SL-MO-R1LB
    Earth City, MO 63045

How Do I Appeal an Overpayment?

Your voice matters!

DO NOT request a redetermination until you receive your Overpayment Demand Letter.

When you receive a demand letter to refund an overpayment, it is in your best interest to immediately refund the requested amount. This will help you avoid an offset and accruing interest.

  • Complete the Redetermination Request FormPDF. When completing the form, follow these tips:
    • Select Yes in the Overpayment Appeal section of the form
    • Indicate who requested the overpayment (Medical Review, UPIC, CERT, SMRC, or Recovery Auditor)
    • List the claim control number (CCN) of the adjusted claim that reflects the overpayment
    • Submit one request per demand letter
    • Specify in your request if you wish to appeal the entire amount of the overpayment demand letter or only certain claims. For cases involving multiple beneficiaries, it may be helpful to include a spreadsheet or list containing all of the items identified on the Redetermination Request Form.
  • When you submit the form, include the following items if they apply:
    • Copy of the audit results letter
    • Copy of the overpayment demand letter
    • Documentation needed to support the appeal
Redetermination Submission Methods Contact Information/Instructions

myCGS® DME Web Portal

*The fastest and easiest way to submit redetermination requests

Overpayment Appeals Fax

615.660.5976

Mail

CGS – Jurisdiction B Redeterminations
PO Box 20007
Nashville, TN 37202

Financial Hardship Options

Accelerated & Advance Payments

When suppliers have financial difficulty due to delayed Medicare payment for services provided, they may qualify for accelerated or advance payments.

Bankruptcy

  • Filed bankruptcy and need to notify CGS? Send a copy of the bankruptcy notification given by the courts to the address below:

    CGS
    PO Box 20007
    Nashville, TN 37202-0010

Extended Repayment Schedule

If a lump sum refund would cause severe financial hardship, you can request Extended Repayment Schedule (ERS).

Overpayment Resources

Updated: 08.20.2026
Reviewed: 08.20.2026

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