42 CFR § 489.40 - Definition of incorrect collection.

---
identifier: "/us/cfr/t42/s489.40"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 489.40 - Definition of incorrect collection."
title_number: 42
title_name: "Public Health"
section_number: "489.40"
section_name: "Definition of incorrect collection."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "G"
subchapter_name: "STANDARDS AND CERTIFICATION"
part_number: "489"
part_name: "PROVIDER AGREEMENTS AND SUPPLIER APPROVAL"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302, 1395i-3, 1395x, 1395aa(m), 1395cc, 1395ff, and 1395hh."
regulatory_source: "45 FR 22937, Apr. 4, 1980, unless otherwise noted."
cfr_part: "489"
---


# 489.40 Definition of incorrect collection.

(a) As used in this subpart, “incorrect collections” means any amounts collected from a beneficiary (or someone on his or her behalf) that are not authorized under subpart C of this part.

(b) A payment properly made to a provider by an individual not considered entitled to Medicare benefits will be deemed to be an “incorrect collection” when the individual is found to be retroactively entitled to benefits.