Reminder of Change in Processing of Accounts Receivable

Previously, recoupment of system-generated Accounts Receivable (AR) began 30 days after the AR was established. As of May 1, 2016, recoupment of a system-generated AR begins with the subsequent checkwrite after the system-generated AR has been established.

An AR is created in NCTracks when a provider does not have sufficient paid claims in the current checkwrite to satisfy a recoupment of funds, often related to claims reprocessing. Waiting 30 days to begin recoupment of the AR meant that the provider was then subject to penalties and interest, based on State business rules. Commencing the recoupment of the AR in the next checkwrite helps providers avoid incurring penalties and interest.

When an AR is created, a new letter is generated to inform a provider’s Chief Executive Officer (CEO) that money is owed to a N.C. Department of Health and Human Services (DHHS) payer. N.C. DHHS payers include the Division of Medical Assistance (DMA), Division of Mental Health (DMH), Division of Public Health (DPH), and the Office of Rural Health (ORH). The new letter is titled “Notice of Balance Due the NC DHHS – First Demand.� A separate First Demand Letter is sent for each payer that is owed money. The First Demand Letter provides information regarding the potential for assessment of penalty and interest and instructions for repayment if the provider does not want to wait on recoupments by NCTracks.

Important Note: For providers who share an Internal Revenue Service (IRS) Taxpayer Identification Number (TIN), NCTracks will automatically seek to recoup the AR from other NPIs with the same IRS TIN if funds are insufficient to completely collect the amount(s) due from the NPI for which the AR was created. The First Demand Letter is sent to all providers who share the same IRS TIN.

If the AR is not satisfied within 30 days, a 30 Days Past Due Letter will be sent to the provider. The 30 Days Past Due Letter is sent only to the provider for whom the AR was established, not to any other providers who share the same IRS TIN. The 30 Days Past Due Letter includes the penalty and interest owed on the AR.

If the AR is not satisfied within 60 days, payment to the NPI for which the AR was established, as well as all other NPIs associated with the same IRS TIN, will be suspended. A 60 Days Past Due Letter will be sent only to the provider for whom the AR was established, not to any other providers who share the same IRS TIN. Providers are responsible for repaying the NC DHHS payer even if they are no longer filing claims to NCTracks.