COLLECTION ALERT for HEALTH CARE PROVIDERS

Another "unintended" consequence of the Affordable Care Act...you decide.

A cost-shifting rule issued by CMS regarding the Affordable Care Act presents potentially catastrophic collection issues for hospitals, physicians and other health care providers.  Essentially, the Affordable Care Act requires insurers to permit a 90-day grace period of nonpayment of insurance premiums by enrollees who obtain federal tax-subsidized health insurance through an Affordable Care Act insurance exchange.  In other words, such enrollees can be delinquent for three (3) months in paying their premiums before the insurer is permitted to cancel their policy.  Hence, the 90-day grace period.  The catch being that the rule promulgated by CMS delegates that the insurers are only responsible to cover claims made during the first 30 days of the delinquent enrollee’s grace period.  After said 30-day period, the enrollee becomes personally liable for any claims incurred during the remaining 60 days of the grace period.  What then happens when a portion of such individuals predictably ignore the medical bills issued for care during that period?  They will become debtors that hospitals, physicians and other health care providers will find themselves chasing at untold costs for collection.  It is imperative that all health care providers stay ahead of the curve and update their paperwork and internal credit and collection policies to prepare for the avalanche of collections sure to come from this new rule.  They simply cannot afford to not do so.


Laura J. Lowenstein, Esq., owner of Capital Resource Management, Inc. and managing member of Laura J. Lowenstein & Associates, LLC, specializes in all aspects of receivables management for physicians and businesses ranging from personalized debt recovery plans through judgment enforcement.  For more information, email info@crmcollect.com or visit www.crmcollect.com.