Title 42, The Public Health and WelfareRelease 119-110

§1395vv Withholding Payments From Certain Medicaid Providers

Title 42 › CHAPTER 7 — SOCIAL SECURITY › SUBCHAPTER XVIII — HEALTH INSURANCE FOR AGED AND DISABLED › Part E — Miscellaneous Provisions › § 1395vv

Last updated Sep 22, 2026|Official source

Summary

The Secretary can reduce or hold back Medicare Part A and Part B payments to a hospital or other provider that has a Medicare agreement under section 1395cc, or to a person paid by assignment under section 1395u(b)(3)(B)(ii), when that provider also had an agreement with a State Medicaid agency under the State plan (subchapter XIX) and the State either cannot get back Medicaid overpayments or cannot get the information it needs to figure how much was overpaid. The Secretary must write rules that make sure the State gave proper notice and a chance to appeal or to supply information, that set how much Medicare pay can be used to cover the Medicaid overpayment, and that return any money taken that turns out to be more than the overpayment. Money recovered will be paid to the State from the trust funds under sections 1395i and 1395t and counted as Medicaid overpayment recoveries.

Full Legal Text

Title 42, §1395vv

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Adjustments by Secretary
The Secretary may adjust, in accordance with this section, payments under parts A and B to any institution which has in effect an agreement with the Secretary under section 1395cc of this title, and any person who has accepted payment on the basis of an assignment under section 1395u(b)(3)(B)(ii) of this title, where such institution or person—
(1)has (or previously had) in effect an agreement with a State agency to furnish medical care and services under a State plan approved under subchapter XIX, and
(2)from which (or from whom) such State agency (A) has been unable to recover overpayments made under the State plan, or (B) has been unable to collect the information necessary to enable it to determine the amount (if any) of the overpayments made to such institution or person under the State plan.
(b)Implementing regulations; notice, opportunity to be heard, etc.
The Secretary shall by regulation provide procedures for implementation of this section, which procedures shall—
(1)assure that the authority under this section is exercised only on behalf of a State agency which demonstrates to the Secretary’s satisfaction that it has provided adequate notice of a determination or of a need for information, and an opportunity to appeal such determination or to provide such information,
(2)determine the amount of the payment to which the institution or person would otherwise be entitled under this subchapter which shall be treated as a setoff against overpayments under subchapter XIX, and
(3)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 XIX and to which the institution or person would otherwise be entitled under this subchapter.
(c)Payment to States of amounts recovered
Notwithstanding any other provision of this chapter, from the trust funds established under section 1395i and 1395t of this title, as appropriate, the Secretary shall pay to the appropriate State agency amounts recovered under this section to offset the State agency’s overpayment under subchapter XIX. Such payments shall be accounted for by the State agency as recoveries of overpayments under the State plan.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1395vv

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110