One advantage of being a Rural Health Clinic is the ability to include your Medicare Bad Debt with your yearly cost report. Medicare Bad Debt is any Deductible and Coinsurance amounts uncollected for Medicare Beneficiaries after collection efforts.
Indigent or Medically Indigents patients and patients not deemed to be indigent are two types of Medicare Bad Debts. No collection efforts are necessary with Indigent or Medically Indigent Patients however collection efforts are required for those patients not deemed indigent.
Before these patients are considered for the Medicare Bad Debt Log ask yourself:
· What can be included on the Medicare Bad Debt?
· When to write these Debts off?
· What is the Collection Policy?
· Do you have all necessary audit documentation?
· Are you recording this information on the appropriate Medicare Bad Debt Log?
If you find yourself without the answers to these questions please contact our Rural Health Support Specialist for further assistance. Let us help you prepare for your Medicare Bad Debt Report so you are not leaving critical revenue on the table!