CMS Pub. 100-06, ch. 3, § 140.7

CMS provides a working definition of the term "claim" in §140.2. The proof of claim form alerts the

court to the existence of Medicare's claim. While exceptions exist, the general rule of thumb is that to

share in the bankruptcy estate, Medicare must file a proof of claim. The CMS Office or CMS Counsel

will file the proof of claim. It is critical that Contractors produce accurate and detailed overpayment

data, if requested, to the CMS Office or CMS Counsel to file a timely proof of claim.

In Chapter 7 and Chapter 13 bankruptcies, the deadline ("bar date") for the Government to file a proof

of claim is 180 days after the bankruptcy court's order granting relief from creditors (usually the date the

provider files for bankruptcy). The bankruptcy court establishes the bar date by court order in Chapter 9

and Chapter 11 bankruptcies. To meet the bar date, the Government must:

1. Get notice of the bankruptcy

2. Direct that notice to the appropriate agency and appropriate personnel

3. Determine exactly how many payment agreements the entity in bankruptcy has with Medicare

(i.e., do they owe Medicare and if so, how much)

4. Determine the status of each payment agreement

5. Prepare the proof of claim form

6. Get CMS Counsel approval

7. Sign it; and

8. File it in the bankruptcy court

Because the time to finalize a proof of claim can be short, the Contractors update overpayment

information as requested.