09/15/2026

VA No Longer Accepting Unsolicited Overpayment Refunds

Be Sure to Know Each Insurers Policies and Procedures for Returning Overpayments

VA recently announced that they will no longer be accepting unsolicited overpayment refunds and that community providers must have a valid bill of collection (BOC) before sending refunds to VA.

• If the overpayment is identified by VA, the provider will issue a BOC, notice of indebtedness, and payment instructions.
• If the provider identifies the overpayment, they should call 877-881-7618 to initiate a BOC. Payment should not be submitted until the BOC and payment instructions are received.

All payments to VA – whether self-identified or identified by VA – must be made electronically using the instructions provided in the notice of indebtedness letter. VA will not accept physical checks, and they will be returned unpaid.

If you receive a BOC, notice of indebtedness, etc., and need assistance, contact VA Community Care Customer Service ay 877-881-7618, M-F, 8a-9p ET. For additional information, including more on the BOC and Notice of Indebtedness, relevant timelines, additional contact information, and more, see the VA Community Care Debt Collection webpage.

Know All Your Payers Procedures for Overpayment

VA’s announcement is a good opportunity for chiropractic practices to review the processes and procedures for overpayment returns, whether a retroactive denial or reduced payment of a previously paid claim, for every insurer with which they participate. Each insurance company – Medicare, Medicaid, commercial insurers, HMOs, PPOs, etc. –has its own process for handling overpayments and refunds – there are no cookie-cutter templates for repayment. Be sure to:

• Never send a refund to an insurance company without contacting them first. Review the payer’s provider manual and agreement, website, and all other relevant communications for repayment instructions. Look for:
  • Relevant timeframes for payments, appeals, etc.
  • Terms stating how the overpayment should be repaid (for example, will they automatically recoup from future payments, do they require immediate repayment in full, payment plan options, if available, etc.)
• If you cannot locate the proper procedure, contact the payer to confirm the correct process.
• If the provider agreement has a time limit, such as 24 months after the original payment, in which to claw back funds, make sure any request for a return of a previously made payment falls within that period. We have seen instances when a payer was taken to court for not following their own provider agreement regarding takeback timeframes.
• Monitor payments and watch for:
  • Payments from more than one insurer for the same claim
  • Payments for duplicative claims
  • Higher payments than usually received for the same service
• Finally, be sure that your billing and documentation complies with the insurer’s rules and that services and diagnoses are accurately coded, including all necessary modifiers.

Overpayment return requests can cause significant administrative headaches, which can be compounded when the provider does not know their rights and responsibilities throughout every stage of the process. Addressing these issues can be complicated but knowing in advance how to effectively and efficiently respond can make it less so and is vital to the economic health of your practice.

 Written By: 

Stephanie Davidson
Michigan Association of Chiropractors Insurance Director