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Payment Error Rate Measurement (PERM) RY 2025 Cycle 1 KickOff April 26, 20231Agenda PERM Program Overview (CMS) Statistical Contractor (SC) Claims Data Submission FeeForService (FFS) and Managed Care
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How to fill out payment error rate measurement

01
Gather all relevant payment data from your records.
02
Calculate the total number of payments processed during a specific period.
03
Determine the number of payment errors found within the same period.
04
Divide the total number of payment errors by the total number of payments processed.
05
Multiply the result by 100 to get the payment error rate percentage.

Who needs payment error rate measurement?

01
Payment processors
02
Financial institutions
03
Government agencies regulating payment systems
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Payment error rate measurement is a process used to assess the accuracy of payments made by a program, determining the frequency and cause of payment errors.
Organizations and entities that participate in certain federal programs that require monitoring of payment accuracy are typically required to file payment error rate measurement.
To fill out payment error rate measurement, entities must collect data on payments, review them for accuracy, calculate the error rate, and submit the necessary documentation as per guidelines provided by the overseeing body.
The purpose of payment error rate measurement is to identify and reduce the occurrence of payment errors, ensuring the efficient use of funds and compliance with federal regulations.
Entities must report data including the total number of payments, the number of payment errors, the nature of these errors, and the steps taken to correct them.
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