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CMS to Begin Enforcing Accounting Classification Rule for Crossover Bad Debts

On April 4, CMS announced that for cost reporting periods beginning on or after October 1, 2019, providers must comply with a “longstanding” rule to claim reimbursement for crossover bad debts from the Medicare program. After this point, providers will be denied reimbursement for their crossover bad debts unless the underlying balances are logged to a bad debt expense account in their financial accounting records.

For more details, please review the announcement from CMS here.

If you have questions about how this affects your organization or how to ensure you are compliant by the October 1 deadline, please contact Dan Rice at drice@blueandco.com.

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