Other Required Reporting

Debt Collection Improvement Act

HHS manages its delinquent debt pursuant to the Debt Collection Improvement Act of 1996. The Department refers delinquent debt to the Department of the Treasury (Treasury) for cross-servicing and offset. HHS’s debt referral process is centralized through its delinquent debt collection center at the Program Support Center. Treasury granted a cross-servicing exemption for several types of program debts (e.g., Medicare Secondary Payer and various health professional loans). These debts are cross-serviced by the PSC, who also refers them to the Treasury Offset Program.

HHS referral rates at the end of the third quarter FY 2007 were: 98 percent of debt eligible for referral was referred to the Treasury Offset Program and 98 percent of debt eligible for referral was cross-serviced. HHS collections exceeded $21.2 billion at the end of the third quarter FY 2007. (Year-end figures will not be available before November 15.)

Other Required Reporting chart 1

Prompt Payment Act

The Prompt Pay Act requires Federal agencies to make timely vendor payments and to pay interest penalties when payments are late. HHS has maintained a timely payment rate above 95% for the last five years. HHS’ prompt pay rate for FY 2007 was 96.46%.

Federal Civil Penalties Inflation Adjustment Act

Civil monetary penalties are non-criminal penalties for violation of Federal law. The Federal Civil Penalties Inflation Adjustment Act of 1990 mandates periodic evaluation to ensure that the penalties maintain their deterrent value and are properly accounted for and collected. During FY 2006, only the Centers for Medicare and Medicaid Services and the Food and Drug Administration imposed civil monetary penalties.

Topics in Section III include:

Report Date: November 15, 2007