November 28, 2015

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

Bill has extensive experience advising health care clients, ranging from individual practitioners to large health systems, in transactional and compliance matters, including contracting, fraud and abuse, and non-profit issues. Bill also works extensively on corporate matters for owner-operated and mid-market companies. His work includes transactions, contracts, terms and conditions, among other matters.

Prior to joining von Briesen & Roper, Bill worked as an Administrative Fellow at a hospital system in western Wisconsin. In this capacity,...