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TO: All Providers
FROM: CareFirst of Maryland Inc.
DATE: March 8, 2001
SUBJECT: Notice of Interest Rate for Medicare Overpayments and Underpayments

Medicare Regulation 42 CFR §405.378 provides for the assessment of interest at the higher of the private consumer rate (PCR) or the current value of funds rate (5 percent) for calendar year 2001. The Secretary of the Treasury has notified the Department of Health and Human Services that the PCR has been revised to 14.125 percent. The notice of the PCR was published in the Federal Register (see Vol. 66, No. 26 dated 02/07/01).

Therefore, the PCR will remain in effect until a new rate change is published. In addition, this reaffirms interest rates for prior periods.

INTEREST RATE TABLE

Period Interest Rate
October 24, 1996 - January 22, 1997 13.375%
January 23, 1997 - April 23, 1997 13.625%
April 24, 1997 - July 24, 1997 13.50%
July 25, 1997 - October 23, 1997 13.75%
October 24, 1997 - January 27, 1998 13.875%
January 28, 1998 - May 12, 1998 14.50%
May 13, 1998 - July 30. 1998 14.00 %
July 31, 1998 - October 22, 1998 13.75%
October 23, 1998 - January 31, 1999 13.50%
February 01, 1999 - May 04. 1999 13.75%
May 05, 1999 - August 03, 1999 13.375%
August 04, 1999 - October 27,1999 13.25%
October 28, 1999 - February 1, 2000 13.375%
February 2, 2000 - May 2, 2000 13.5%
May 3, 2000 - July 31, 2000 13.75%
August 1, 2000 - October 23, 2000 13.875%
October 24, 2000 - February 6, 2001 13.875%
February 7, 2001 14.125%

The effective & implementation date for this bulletin is February 7, 2001.

THIS BULLETIN SHOULD BE SHARED WITH ALL HEALTH CARE PRACTITIONERS AND MANAGERIAL MEMBERS OF THE PROVIDERS/SUPPLIER STAFF. ALL BULLETINS ISSUED AFTER OCTOBER 1, 1999 ARE AVAILABLE AT NO COST FROM OUR WEB SITE AT www.marylandmedicare.com.

(Source: Program Memorandum AB-01-27; Change Request 1385)

Questions regarding this bulletin should be directed to the Provider Relations Department at (410) 561-0541.







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