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National Law Review
National Law Review
7/13/2026
The original headline is: "CMS's Revised Medicare Overpayment Rule: What Healthcare Providers Need to Know"

The original headline is: "CMS's Revised Medicare Overpayment Rule: What Healthcare Providers Need to Know"

Original: CMS's Revised Medicare Overpayment Rule: What Healthcare Providers Need to Know

Short summary

CMS revised Medicare and Medicaid overpayment rules, replacing the 'reasonable diligence' standard with the False Claims Act's 'knowingly' standard for when an overpayment is considered identified. Providers now get up to 180 days to investigate related overpayments while the 60-day repayment deadline is suspended. Despite added flexibility, providers must still maintain robust compliance programs and document investigative efforts to avoid FCA exposure.

  • CMS replaced 'reasonable diligence' with FCA's 'knowingly' standard for identifying overpayments
  • New 180-day investigation suspension period for related overpayments replaces rigid 60-day deadline
  • Providers must still maintain robust compliance programs or face FCA liability and enforcement actions

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