A Notice of Proposed Rulemaking regarding Medicare bad debt reimbursement policy is to be published today, February 10, in the Federal Register. The proposed rule would extend the 30% reduction in bad debt reimbursement to all providers, not just hospitals, and clarify that bad debts are not allowable for entities paid under reasonable charge or fee schedule methodologies. The proposed rule would also remove the cap on allowable Medicare bad debt for ESRD facilities. The stated purpose of the proposed rule is to achieve consistency in CMS's bad debt reimbursement policy for all entities eligible to receive Medicare payments for bad debt. Comments to the proposed rule must be provided to CMS within sixty days after the date of publication of the rule in the Federal Register.
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