CMS has issued audit guidance pertaining to write-offs of small debit balances in patients' accounts receivables - In Brief - Brief Article

Healthcare Financial Management, August, 2002

CMS has issued audit guidance pertaining to write-offs of small debit balances in patients' accounts receivables. To make the most productive use of audit resources, the agency advises against reviewing debit balances under $10. Medicare deductible and coinsurance amounts are allowable as bad debts only if the hospital exerts a reasonable effort to collect them for at least 120 days from the date the first bill was completed. The guidance will take effect October 1, 2002. To read the guidance, published in Program Memorandum A-02-043, go to http://www.hcfa.gov/pubforms/transmit/A02043.pdf.>