What is a 'Correction Notice'

A correction notice indicates that a process or application contains errors or omissions that require corrections. Correction notices are typically issued by government agencies and may be issued for a variety of reasons. The government may want to clarify how organizations can participate in a government-sponsored program, ask applicants to update their applications because of missing or incomplete information, or address how organizations and individuals can comment on a proposed regulation. A correction notice is also sometimes called a notice of correction.

BREAKING DOWN 'Correction Notice'

Correction notices are sometimes required after complex legislation is enacted, when lawmakers and government agencies discover that changes are required during the implementation process, such as after the passage of the 2010 Affordable Care Act. Government agencies that sponsor insurance programs, such as the Centers for Medicare & Medicaid Services, provide guidelines to organizations that want to offer plans in federally facilitated health insurance marketplaces. These guidelines include operational and technical instructions to help organizations ensure that they are meeting all the necessary requirements, comply with certification standards and include information about the application process.

Because the application process can be complicated, agencies may have to issue a correction notice if the instructions were too vague or contained incorrect information. The correction notice will supersede the original instructions it is meant to correct. For federal programs, correction notices are published in the Federal Register, which can be viewed by the public and provides notifications about federal programs and regulations. Correction notices also appear in the Federal Register when typographical or clerical errors were made in previously published Presidential, Rule, Proposed Rule and Notice documents.

Corrections Notices for Organizations Applying for Government Programs

Organizations that submit applications to participate in a government program go through a multi-step review process. After submission, the application is reviewed to ensure that it has been completed correctly. If there is missing or unclear information, the reviewing agency will send out a correction notice. A correction notice issued to a business trying to obtain a license, for example, may indicate that the business failed to have the application notarized or forgot to sign the application document. The business will have the opportunity to fix the error and resubmit the application. In some states, such as New York, Limited Liability Company applicants are required to pay a statutory fee to file a Certificate of Correction. If the business makes further errors, it may have additional correction notices issued to it.

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