Locating Your DCN SEQ

The DCN SEQ number can be located on the first page of the overpayment demand letter. Below are two examples of the first page from the two types of demand letters you may receive.

Most Common Letter

The most common overpayment letter, the DCN SEQ is located in the top right of the letter below the date.

Second Type of Letter

The second type of overpayment letter is located right below address and NPI.

Understanding the Results Fields

935 Indicator

Section 935 of the MMA, which amended Title XVIII of the Social Security Act Section 1893 paragraph (f), changed the supplier overpayment recoupment process. You can request a first level appeal subject to 935. When a valid first level appeal request (redetermination) or a valid second level (reconsideration) request is received from a supplier on an overpayment subject to these limitations the Medicare contractor will cease recoupment or not begin recoupment at the normally scheduled time. During this appeal process, the Medicare contractor cannot recoup or demand the debt; however, the debt continues to age. Once both levels of appeal are completed and the CMS prevails, collection activities, including demand letters and internal recoupment, may resume.

Y = The overpayment DCN SEQ number entered is subject to limitation on recoupment.

N/A = The overpayment DCN SEQ entered is not subject to the limitation on recoupment.

Offset Status

When an overpayment is not paid in full by the 40th day from the date of the initial demand letter, the offset process is started. Future payments will be offset until the overpayment is recouped (paid in full). Medicare will also take interest on the overpayment amount. Interest accrues every 30 days on the unpaid principal.

Y = The overpayment associated with the DCN SEQ number entered has been placed in offset and future payments will be offset until the overpayment is recouped (paid in full).

N/A = The overpayment associated with the DCN SEQ number entered has not been placed into offset.

Appeal Review

If you disagree with an overpayment request, then an appeal request may be initiated through the first level of the appeals process, a redetermination. However, if the overpayment was initiated as a result of a redetermination, then you must request a reconsideration to be conducted by the QIC, which is the second level of the appeals process.

When the initial demand letter is received and the letter is requesting a refund, you should immediately refund the amount requested and then file an appeal, if necessary. This will help you avoid an offset with interest charges from accruing.

The demand letter will have detailed instructions on how to file an appeal.

Y = The DME MAC is in receipt of a request for redetermination on the overpayment DCN SEQ number entered.

N/A = The DME MAC has not received a request for Redetermination on the Overpayment DCN SEQ number entered.

Referred to Treasury

The DME MAC is required to refer eligible delinquent debt (overpayments) to the Department of Treasury between 120 and 180 days from the initial demand letter, for advanced collections.

Y = The DCN SEQ number has been referred to the Department of Treasury for advanced collections.

N = The DCN SEQ number has not been referred to the Department of Treasury for advanced collections.

Note: Additional information regarding overpayments can be found in Jurisdiction B Supplier Manual, Chapter 21.