Article: Medicare bad-debt litigation continues.(Medicare/Medicaid Litigation)

One of the most litigious Medicare issues in recent years has been reimbursement for Medicare bad debts. Recently, three decisions have come down involving bad-debt reimbursement issues--one court of appeals decision continuing the judicial trend in favor of providers and two rulings by the administrator of the Health Care Financing Administration (HCFA).

Background

Medicare reimburses hospitals for bad debts attributable to Medicare deductibles and coinsurance so long as hospitals make reasonable collection efforts. Until 1987, bad-debt claims were rarely controversial.

During 1987, however, the Office of the Inspector General issued a ...

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