General Category > General Questions
Medicare rules on blg pts for copays/ded
PMRNC:
When you have a small balance like that, a reasonable attempt to collect is usually one statement (envelope/postage)
You then record the adjustment in the PM software as a small balance write off. You want to make sure all your adjustments are entered correctly so that you can pull the right reports when needed. For example a patient that can't pay a balance after a few attempts of collecting would be a Bad Debt Write off, a small balance like the one you mentioned is a small debt write-off (not cost effective to pursue).
Michele:
I'm no accountant either and I don't have any misconceptions that I am, but I was once told by a lawyer that they cannot write it off. I'm desperately searching my brain for the explanation he gave me....but I'm afraid it's too late at night, and I've seem one too many children's program tonight! I think he said that it was because it was not money lost since it was never collected??? Does that make sense? All I remember for sure is the answer was no. But I bet you ask a different lawyer, or accountant and you could get a different answer!
Michele
PMRNC:
Michele, I think you are right.. I asked my accountant if I could write off the accounts that I couldn't collect on (I do websites and hosting) and he said no, so maybe it falls in the same line, but that doesn't seem fair since services were rendered but it's bad debt?
Michele:
We had the same thing, two accounts went out of business and left us with the last bill. Nothing we could do!
Michele
Pay_My_Claims:
--- Quote from: Michele on August 01, 2009, 12:49:30 AM ---I'm no accountant either and I don't have any misconceptions that I am, but I was once told by a lawyer that they cannot write it off. I'm desperately searching my brain for the explanation he gave me....but I'm afraid it's too late at night, and I've seem one too many children's program tonight! I think he said that it was because it was not money lost since it was never collected??? Does that make sense? All I remember for sure is the answer was no. But I bet you ask a different lawyer, or accountant and you could get a different answer!
Michele
--- End quote ---
Did you ask him if you could w/o as a bad debt for tax purposes, or w/o as a bad debt from the accounting system as noncollectable income? Providers pay taxes on money owed to them from patients. if you can't collect, it sits there year after year after year and is counted as revenue. I have NEVER been told that you can't adjust off a bad debt (copay, deductible, coinsurance) when you have exhausted all means to collect.
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