The letter requesting a refund will include a description of all of the debtor's rights under the law, including the right to appeal. The debtor will also be told of all the actions the government may take to collect the erroneous payment. When the provider refunds the payment, the patient may be asked to pay the provider for the amount returned to the contractor. The government may make arrangements with the debtor to make incremental payments if the debt cannot be repaid all at once. If the debtor cannot make payment, he or she will be asked to submit financial data, including income tax returns, statement of retained earnings, profit and loss statements and balance sheets, all of which will be used in determining whether the debt may be compromised or waived.
Unpaid debts are subject to penalties and the assessment of interest and collection costs.
The debt may be referred to a credit bureau, affecting future credit Legal action may be taken against the debtor. A court judgment against the debtor may result in a seizure of assets to satisfy the debt. Under the peer review process, when services or items are deemed not medically necessary, the beneficiary may not be held liable. For additional information on liability, see section on Appeals.