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Medicare and Medicaid Need a Priority in the Recovery of Overpayments from Bankrupt Providers

Issued on  | Posted on  | Report number: A-09-90-00141

Report Materials

EXECUTIVE SUMMARY:

This final report addresses the need to improve the recovery of Medicare and Medicaid overpayments from bankrupt providers. We found that: (1) the current Federal bankruptcy law does not provide Medicare and Medicaid with a priority in the recovery of overpayments from bankrupt providers, (2) neither Medicare nor Medicaid prepared management information reports on receivables written-off as bad debts, and (3) the losses to the Government from these bad debts may be substantial.


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