DEFINITION of 'Correction Notice'

A notice indicating that a process or application contains errors 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.

BREAKING DOWN 'Correction Notice'

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 insurance marketplaces. These guidelines include operational and technical instructions to help organizations ensure that they are meeting all the necessary requirements and 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 instructions were too vague or contained incorrect information. The correction notice will supersede the original instructions it is meant to correct. For federal programs, corrections notices are published in the Federal Register which can be viewed by the public and is where notifications about federal programs and regulations are posted.

Organizations that submit an application 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. If the business makes further errors, it may have additional correction notices issued to it.

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