Hospitals may discount services to uninsured and underinsured patients who are unable to pay their hospital bills. According to OIG guidance for providing discounts, hospitals:
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Should reflect full uniform charges on the Medicare cost report and inform the Medicare administrative contractor that it has reported its full charges
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Can forgo collection efforts aimed at a Medicare patient if the hospital documents the patient is indigent or medically indigent
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May claim discounted amounts as Medicare bad debt after determining that no source other than the patient is legally responsible for the unpaid deductible and coinsurance.
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Can determine their own indigent-care criteria if they uniformly apply it to Medicare and non-Medicare patients
This tip was adapted from the Compliance Program Effectiveness Handbook. For more information on how to order your copy, visit the HCMarketplace.


