Laws: Cases and Codes : U.S. Code : Title 42 : Section 1396m


   
U.S. Code as of: 01/19/04
Section 1396m. Withholding of Federal share of payments for certain medicare providers

    (a) Adjustment of Federal matching payments
      The Secretary may adjust, in accordance with this section, the
    Federal matching payment to a State with respect to expenditures
    for medical assistance for care or services furnished in any
    quarter by - 
        (1) an institution (A) which has or previously had in effect an
      agreement with the Secretary under section 1395cc of this title;
      and (B)(i) from which the Secretary has been unable to recover
      overpayments made under subchapter XVIII of this chapter, or (ii)
      from which the Secretary has been unable to collect the
      information necessary to enable him to determine the amount (if
      any) of the overpayments made to such institution under
      subchapter XVIII of this chapter; and
        (2) any person (A) who (i) has previously accepted payment on
      the basis of an assignment under section 1395u(b)(3)(B)(ii) of
      this title, and (ii) during the annual period immediately
      preceding such quarter submitted no claims for payment under
      subchapter XVIII of this chapter, or submitted claims for payment
      under subchapter XVIII of this chapter which aggregated less than
      the amount of overpayments made to him, and (B)(i) from whom the
      Secretary has been unable to recover overpayments received in
      violation of the terms of such assignment, or (ii) from whom the
      Secretary has been unable to collect the information necessary to
      enable him to determine the amount (if any) of the overpayments
      made to such person under subchapter XVIII of this chapter.
    (b) Reductions in payments to and by States
      The Secretary may (subject to the remaining provisions of this
    section) reduce payment to a State under this subchapter for any
    quarter by an amount equal to the lesser of the Federal matching
    share of payments to any institution or person specified in
    subsection (a) of this section, or the total overpayments to such
    institution or person under subchapter XVIII of this chapter, and
    may require the State to reduce its payment to such institution or
    person by such amount.
    (c) Notice
      The Secretary shall not make any adjustment in the payment to a
    State, nor require any adjustment in the payment to an institution
    or person, pursuant to subsection (b) of this section until after
    he has provided adequate notice (which shall be not less than 60
    days) to the State agency and the institution or person.
    (d) Regulations
      The Secretary shall by regulation provide procedures for
    implementation of this section, which procedures shall (1)
    determine the amount of the Federal payment to which the
    institution or person would otherwise be entitled under this
    section which shall be treated as a setoff against overpayments
    under subchapter XVIII of this chapter, and (2) assure the
    restoration to the institution or person of amounts withheld under
    this section which are ultimately determined to be in excess of
    overpayments under subchapter XVIII of this chapter and to which
    the institution or person would otherwise be entitled under this
    subchapter.
    (e) Restoration to trust funds of recovered amounts
      The Secretary shall restore to the trust funds established under
    sections 1395i and 1395t of this title, as appropriate, amounts
    recovered under this section as setoffs against overpayments under
    subchapter XVIII of this chapter.
    (f) Liability of States for withheld payments
      Notwithstanding any other provision of this subchapter, an
    institution or person shall not be entitled to recover from any
    State any amount in payment for medical care and services under
    this subchapter which is withheld by the State agency pursuant to
    an order by the Secretary under subsection (b) of this section.



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