December 19, 2014

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New Medicare Bad Debt Proposed Rule

On July 11, 2012, the U.S. Department of Health and Human Services (HHS) published a proposed rule codifying the Medicare bad debt provisions in Section 3201 of The Middle Class Tax Extension and Job Creation Act of 2012, which became effective earlier this year.

Under the rule, by fiscal year 2015, allowable bad debt amounts will decrease to 65 percent for many providers, including hospitals, skilled nursing facilities, critical access hospitals, federally qualified health centers, and rural health clinics.  HHS notes that the new bad debt provisions will save the Medicare program $10.9 billion over the next ten years.

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About this Author

William O. Jackson, health care, employment, attorney, von Briesen, law firm
Attorney

Bill Jackson is a member of the Health Care Practice Group where he focuses on both health law and employment law.

Prior to joining von Briesen & Roper, Bill worked as an Administrative Fellow at a hospital system in western Wisconsin. In this capacity, he worked on legal and administrative matters, including strategic planning, hospital program development, physician contracting, and compliance. Bill has also worked in the corporate office of a large, multistate hospital system and in administration at a community hospital.

During law school, Bill was a member of the...

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