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Protocol for Voluntary Self-Disclosure of Provider Overpayments

The Indiana Health Coverage Programs (IHCP) has established a self-disclosure protocol for providers wishing to report Medicaid and Children's Health Insurance Program (CHIP) fee-for-service overpayments they have identified.

The IHCP understands that internal compliance processes often identify improper payments that have been made to a provider. While providers that determine they have received inappropriate payments from the IHCP are obligated by federal and State law to return the overpayments, the IHCP believes a process to facilitate reporting and repayment of these improper payments is beneficial to providers and the State. The self-disclosure protocol gives providers an easier process for reporting matters that involve possible fraud, waste, abuse, or inappropriate payment of funds, whether intentional or unintentional, to the IHCP. By enhancing the State's relationship with providers through this self-disclosure approach, the IHCP hopes to further its efforts to eliminate fraud, waste, and abuse, while also offering providers an opportunity to reduce their legal and financial exposure.

Providers should use the self-disclosure protocol to report the following self-identified items:

  • Provider billing system errors or issues that result in overpayments
  • Potential violations of federal, state, or local laws
  • Potential violations of regulations
  • Potential violations of billing, coding, or other healthcare policies

Note that the preceding list is not an all-inclusive list of potential errors or issues that may be reported. However, errors or overpayments that are the result of issues with the IHCP claim-processing system should not be reported through this self-disclosure mechanism. Please report IHCP claim-processing payment issues to the IHCP Provider and Member Concerns Line at 1-800-457-4515, Option 8 for Audit Services.

The IHCP requests that the self-disclosure protocol be used in the following scenarios:

  • To self-report overpayments involving specific compliance issues
  • To self-report overpayments involving cumulative amounts greater than $1,000
  • To self-report overpayments involving fraud or violations of law

Simple, more routine occurrences of overpayments that do not meet the above criteria should continue through typical methods of resolution, which may include voiding or adjusting the claims UNLESS the provider feels compelled to self-report the overpayments through this process.

Potential Benefits of Self-Disclosure

While the resolution of each self-disclosure depends upon the merits of the specific situation, the IHCP reminds providers that self-disclosure of an overpayment will, in many circumstances, result in a better outcome for the provider than if the IHCP or other review organization discovers the matter independently.

Managed Care Overpayment Self-Disclosures

The self-disclosure process outlined on this web page is designed for providers that wish to report Medicaid and CHIP fee-for-service overpayments. Please do not report managed care overpayment issues using this process. Should you need to report managed care overpayments, please contact the specific managed care entity (MCE) involved or contact the IHCP Provider and Member Concerns Line at 1-800-457-4515, Option 8 for Audit Services.

Self-Disclosures Involving Claim Sampling or Pharmacy Claims

The self-disclosure process outlined on this page is designed for providers that wish to report claim-specific Medicaid and CHIP fee-for-service overpayments that do not include claims for pharmacy services billed on the pharmacy claim. If you would like to pursue a sampling approach or disclose overpayments related to pharmacy claims, you may use the Self-Disclosure Form (Part II of the Voluntary Self-Disclosure of Provider Overpayments Packet mentioned below) to request consultation with a Program Integrity representative. Include information and your request for consultation in Section 5 of the form. If you wish to discuss claim sampling or pharmacy overpayment issues with a Program Integrity representative, please do not include any dollar estimates or claims in your submission.

Provider Responsibilities

Please be advised that under federal law, a provider that identifies an overpayment must report the overpayment and return the entire amount to a Medicaid program within 60 days after the overpayment is identified. See 42 U.S.C. § 1320a-7k(d). A provider that retains an overpayment after the 60-day deadline incurs an obligation under the federal False Claims Act and may be subject to criminal and civil liability, including civil monetary penalties, treble damages and, potentially, exclusion from participation in federal health care programs. A provider that fails to make the repayment within 60 calendar days of identification may also be at risk from a "whistleblower" lawsuit. The IHCP will accept repayments made within 60 calendar days of your identification of an overpayment or your receipt of a notice of an overpayment.

Under Section 6402(d)(1) of  the Patient Protection and Affordable Care Act (PPACA), a provider that identifies an overpayment outside of routine adjustments "shall (A) report and return the overpayment to the Secretary, the State, an intermediary, a carrier, or a contractor, as appropriate, at the correct address; and (B) notify the Secretary, State, intermediary, carrier, or contractor to whom the overpayment was returned in writing of the reason for the overpayment."

In Indiana, one original and one copy of the completed Voluntary Self-Disclosure of Provider Overpayments Packet, including the following information, must be submitted when an overpayment is self-identified:

  • Completed Self-Disclosure Form (Part II), including the Payment Options (Section 6 of the Self-Disclosure Form), identifying whether the overpayment will be satisfied by a refund check or a withhold from future payments
  • Completed Provider Corrective Action Plan (Part III)
  • Completed Overpaid Claims Detail (Part IV)
  • Completed IHCP Request to Waive Appeal Rights (Part V)

An electronic form is available in PDF format at the end of this page for providers to download, complete, and mail to the following addresses:

  • Submit the original version of the packet and the repayment (if paying by check) to:

Audit and Overpayment
IHCP Program Integrity
P.O. Box 636297
Cincinnati, OH 45263-6297

  • Submit a copy of the packet and a copy of the check (if paid by check) to:

Audit Manager

Office of Medicaid Policy and Planning
Family & Social Services Administration
402 W. Washington St., Room W374

Indianapolis, IN 46204

Failure to complete the Voluntary Self-Disclosure of Provider Overpayments Packet, including associated attachments, and to provide a refund or a plan to refund said overpayment qualifies as failure to comply with PPACA. In addition, a provider that fails to do so may be subject to further action by the IHCP including, but not limited to, an audit of the provider's records and/or referral for further investigation. The provider may also be liable for violations of the Federal False Claims Act.

It is each provider's responsibility to maintain detailed records of any overpayment identified and returned in order to demonstrate compliance (regardless of refund method).

After the IHCP reviews all disclosure submission material, you will receive a letter indicating the final overpayment dollar amount and the procedure for remitting additional payment, if necessary. If the submitted claim data does not materially match the IHCP payment data, or if the IHCP does not accept your self-disclosure results, you will receive correspondence with further instructions. Self-disclosure assumes that the provider has waived the right to administrative review and appeal. Consequently, you are asked to complete and submit the IHCP Request to Waive Appeal Rights (Part V) when you submit your self-disclosure form and data.

Please note that the previous list of requested information may not be all-inclusive, as other information may be required, depending upon the circumstances of your self-disclosure. Files containing claims information and all self-disclosure correspondence from all previous sections are to be submitted in an electronic Health Insurance Portability and Accountability Act (HIPAA)-compliant[1] format (via encrypted CD, DVD, or other similar format) to the addresses previous listed.

Should you have any questions concerning the requested information, please contact the IHCP and Member Concerns Line at 1-800-457-4515, Option 8 for Audit Services.

Our Responsibilities

The IHCP is required to identify and recover overpayments as mandated by federal and state laws and regulations. Title XIX of the Social Security Act, Sections 1902 and 1903, and regulations found at Code of Federal Regulations 42 CFR 456, stipulate that utilization review activities of the IHCP ensure that services rendered are necessary and in the optimum quality and quantity. These federal regulations also require the IHCP to have the ability to identify and refer cases of suspected fraud and/or abuse in the IHCP for investigation and/or prosecution. Utilization review activities safeguard against unnecessary care and services, and ensure that payments are appropriate, according to the coverage policies established by the IHCP (Indiana Administrative Code 405 IAC 5-1). The results and recommendations of reviews conducted for this purpose are specifically designed to assist providers in achieving compliance, as well as avoiding future financial penalties incurred when payment for services is recouped.

Therefore, please be advised that self-disclosure of overpayments alone does not absolve a provider of additional liability that may be associated with claims included within a review period or claims included within a time period not examined during an internal review. Please also note that the IHCP's acceptance of your review results and any overpayment associated therewith does not waive the right to further audit or to conduct an examination of these claims, or any other claims within the time period covered by your internal review process. These claims continue to be subject to review by the IHCP, the Centers for Medicare & Medicaid Services (CMS), the Office of Inspector General (OIG), other State or federal agencies, or other investigative entities.

Access the Voluntary Self-Disclosure of Provider Overpayments Packet


[1] Documentation/information shall be submitted in a HIPAA-compliant and secure manner. Please do not email or mail documents without using appropriate encryption methods. Passwords to encrypted files shall be emailed separately from the documentation or data, or provided via telephone.

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