Question
We are a specialty practice in WA. state with many Medicare and Medicaid patients with outstanding balances. I have heard that you cannot send a patient to a collection agency for a bad debt if they have either Medicare or Medicaid. Is this correct?
Also while looking for this site, I read that Medicare reimburses some hospitals for a recipients bad debt....?? I have never heard that before, do you know anything about it?
Answer
Jeannette,
If a patient is on Medicaid the balance should be paid in full, unless the reason why you have an outstanding balance is because the patient might have lost Medicaid coverage. In this case, the patient is now technically without insurance and should be getting a bill. The reality is that if they used to be on Medicaid, they will more then likely have difficulty in paying your bill.
With Medicare, you are allowed to bill the patient for the difference between what Medicare allowed and what Medicare paid.
Hospitals do get a "subsidy" for bad debt, this is done on a annual basis, I'm not certain on all the intricacies of this process.
Good luck.
