Long-Term Care Providers Get New Look at Medicare Bad Debt Pay

Eight long-term care providers will recover more Medicare money to satisfy bad debts because the federal government wrongfully reduced payments for years they weren’t enrolled in state Medicaid programs, a federal court said.

The Centers for Medicare and Medicaid Services, a part of the U.S. Health and Human Services Department, must reevaluate nearly $2 million in claims filed by providers operated by Select Medical Corp. in Alabama, Arkansas, Mississippi, Nebraska, and Wisconsin, the U.S. District Court for the District of Columbia said.

Allowing CMS to deny these payments based on perceived state Medicaid liability subjects the providers to a must-bill ...