April 4, 2008
A C C O U N T R E C O V E R Y S P E C I A L I S T S , I N C .
SPECIAL POINTS OF INTEREST
DOCKET FEE INCREASE
EMPLOYEE OF THE MONTH
Now it is indeed a dilemma! You probably know that WPS has taken a different
position than Wheatlands on many issues, however the one discussed here is the
cancellation of uncollectible accounts before reimbursement on a cost report.
In discussions with KHA and WPS, we have learned the following:
1) Accounts must be COMPLETELY cancelled from your agency or attor-
ney. They may not be retained solely for the benefit of credit reporting.
Although CMS has distinguished between “Active” and “Passive” collec-
tion efforts, neither may be pursued if a provider intends to claim reim-
bursement on a Medicare cost report.
2) If a provider routinely places accounts with a second agency for collection
after the primary agency has returned the accounts, the provider must
place Medicare accounts with the secondary agency as well. And again,
the second agency would then have to completely cancel the accounts be-
fore claiming reimbursement.
3) If the provider wants the agency to identify uncollectible Medicare ac-
counts and cancel them, the agency must also identify and cancel other
types of uncollectible accounts so as not to discriminate against Medicare
(Continued on page 2)
“COST REPORTING AND COLLECTIONS –
THE MEDICARE BAD DEBT DILEMMA – PART II”
BY KECIA KESLER, PRESIDENT/CEO
Despite lobbying efforts of the
Kansas Collectors Association
(KCA), House Bill 2968 re-
cently passed on final action by
the house and the senate and is
now en route to the Gover-
nor. The bill will fund salary
plan adjustments for nonjudicial
employees of the Judicial
Branch by increasing all docket
fees by $9 and depositing the
money into the Judicial Branch
Nonjudiciary Salary Adjust-
ment Fund. The Fund is cre-