CMS Pub. 100-06, ch. 3, § 140.6.1

The Contractor notifies the servicing CMS Office or the CMS Counsel's Office immediately after it

receives information that a provider has filed for bankruptcy. It is essential for the Contractor to obtain

information on all Part A, Part B, or Durable Medical Equipment Administrative Contractor entities

involved in the bankruptcy, including Medicare identifying information, such as provider and supplier

numbers. If the Contractor has difficulty obtaining this information, it will consult with the CMS Office.

After gathering the information described in §140.4.2, the Contractor sends to the servicing CMS

Office.

The Contractor shall discuss with the CMS Office or CMS Counsel whether it should put payments in

an administrative freeze (a holding account) until Medicare has time to assess its position in the

bankruptcy. Also, the CMS Office or CMS Counsel will determine when the proof of claim is due and

whether the CMS Office or CMS Counsel will need additional information to prepare the proof of claim.

The Contractor shall share all new information regarding the provider's overpayments and

underpayments, cost report settlements, etc. with the CMS Office or CMS Counsel if asked. The

Contractor cannot take any further steps without obtaining the advice of the CMS Office and CMS

Counsel.

As the bankruptcy progresses, the CMS Office and Counsel may ask the Contractor to expedite

settlement of cost reports, update the CMS Counsel on provider overpayments or underpayments, and

provide Counsel with assistance on all aspects of the bankruptcy. As bankruptcy cases often have short

deadlines for filing pleadings and other documents, requests from the CMS Office or CMS Counsel must

have the highest priority in the workload, to protect Trust Fund assets.