Medicare Advantage Bad Debt Recovery Service (MABDRS)

As the Advantage option has grown in popularity with beneficiaries, so too has the bad debt associated with these plans.  R-C Healthcare developed the Medicare Advantage Bad Debt Recovery Service (MABDRS) to aid hospitals in reclaiming the unpaid co-pays and deductibles of Medicare Advantage beneficiaries.  Hospitals know of their ability to collect on traditional Medicare bad debt, but may not be aware that Medicare Advantage bad debt can be recovered as well. Our specialists follow the same criteria as for the collection of traditional Medicare bad debt, as well as taking steps particular to Medicare Advantage carriers.  In the MABDRS program, R-C Healthcare:

  • Review Advantage contracts for language addressing bad debt
  • Research all uncollectable, Medicare-related collection, charity care and crossover accounts
  • Review the collection policies and procedures of the hospital and their outside agencies
  • Analyze all payments to determine which amounts can be claimed as bad debt
  • Prepare detailed debt logs
  • Compile documentation to support the bad debt claims for the sample accounts selected by the carrier
  • Assist the hospital in defending its bad debt claims during the carrier audit

The MABDRS program has helped hospitals throughout the United States recover hundreds of thousands of dollars in lost revenue.  The MABDRS does not require significant dedication of time and resources on the part of the hospital as we can do manage the project remotely.