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, lasting
at least 120 days from the date the first bill was completed.
