Providers assume responsibility for overpayment in liability cases.

The Health Care Financing Administration (HCFA) has informed hospitals that they can no longer bill or file liens against liability proceeds involving Medicare beneficiaries. HCFA also told providers that before they request conditional payment from Medicare, they must provide their fiscal intermediaries with complete information about any payments received from primary payers, or else reimburse Medicare for any overpayments. This article examines situations in which providers can be held liable for Medicare overpayment and explains how to lessen the facility's risk.