There is a new audit trend coming down the pipeline that could impact your charity reimbursement for Medicare bad debt. In the past there was no enforcement of statements being sent to a charity patient before they were deemed indigent.
Until a patient has been approved for charity, they are still deemed non-indigent. Auditors are needing to see collection efforts on these non-indigent patients up until the time the patient is approved for charity. Once indigency is determined and the provider concludes that there has been no improvement in the beneficiary’s financial status, the bad debt may be deemed uncollectible without applying a collection effort.
What are Auditors Looking for?
Until the indigent status is granted, auditors will be looking for the following collection efforts:
- Making sure the first statement is sent to patient with in 120 days
- Subsequent collection attempts
- Following your internal bad debt policy regarding number and frequency of statements
Key Questions to Ask Your Team about Charity Reimbursement
- Are you sending statements to your patients until they are approved for charity?
- How many statements does your internal bad debt policy state that a patient must receive?
To safeguard & maximize your Medicare bad debt reimbursement or for more information about charity reimbursement, please contact your local Blue & Co. Advisor.
About Blue & Co., LLC
At Blue & Co., we all have something in common. We didn’t get into this field because we love numbers and spreadsheets – although we definitely do – we got into this field because we love helping others. We’re driven by the impact that our work can have on our teammates, our clients, and our community.
It’s our mission to learn about what keeps you up at night and find ways to give you peace of mind. Because for us, it’s all about your success. Genuinely. We know that what we do is about more than simply helping to ensure the success and profitability of your organization.
It’s also about finding ways to help you achieve personal, financial, and life goals. And when you achieve those goals, you better believe we’re over here doing cartwheels to cheer you on.
