# Financial Hardship write off



## ivonneatanacio (Nov 1, 2011)

Medicare patient calls and has a balance; they state I can't pay the bill because I live on a fixed income. 

Do I ask for a hardship letter? 
Do I ask for taxes as proof of financial hardship? 

What is the protocol for this matter? 

Any information out there I can get??


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## penguins11 (Nov 1, 2011)

Have you tried asking them to make payments?  If they say they cant afford to make payments I would ask them to send a letter stating that due to their limited income they are unable to afford to pay the bill.


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## ivonneatanacio (Nov 1, 2011)

Yes,, Patient stated they can not make payments, but is it required for the provider records to have them send taxes and harship letter?


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## RebeccaWoodward* (Nov 1, 2011)

I would create an office policy for which is viewed as a reasonable collections effort.  Follow this policy for each patient alike...

Where a physician/supplier makes a reasonable collection effort for the payment of coinsurance/deductibles, failure to collect payment is not considered a reduction in the physician’s/supplier’s charge. To be considered a reasonable collection effort, the effort to collect Medicare coinsurance/deductible amounts must be similar to the effort made to collect comparable amounts from non-Medicare patients. It must also involve the issuance of a bill to the beneficiary or to the party responsible for the patient’s personal financial obligations. *In addition, it may include other actions, such as subsequent billings, collection letters and telephone calls or personal contacts which constitute a genuine, rather than token, collection effort*.

http://www.cms.gov/manuals/downloads/clm104c23.pdf

80.8.1

http://www.workworld.org/wwwebhelp/poverty_guidelines_federal.htm

A hardship form is certainly a step in the right direction.


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