Are supplemental rebates subject to interest charges?
Yes, the Welfare & Institutions Code 14105.33 was amended to impose interest and interest penalties on State Supplemental Rebates, beginning with the 4th quarter of 1997. • If a quarter’s supplemental payment is not received within 38 days from the date the invoice is postmarked, interest calculated at the CMS rate (Weekly Federal Treasury-bill rate) is due. • If a quarter’s supplemental payment is not received within 69 days of the invoice postmark date, an interest penalty of 10 percentage points must be added to the weekly T-bill rate under the CMS interest formula. The interest and the state 10% penalty continue to accrue until the day payment is postmarked to us. • If a manufacturer made a supplemental overpayment as a result of a dispute resolution, the state owes interest for payments made 38 days after the date of dispute resolution.
