Debts Returned by Treasury as Uncollectable (RU) or Out of Business (RN)

60.10 – Debts Returned by Treasury as Uncollectable (RU) or Out of Business (RN) (Rev. 12438; Issued: 01-04-24; Effective: 02-06-24; Implementation: 02-06-24) The MSP Contractors shall use the RTA report to research the debts in order to determine the current status or final disposition. The debts already in a recalled status are included so that the MSP Contractors will know that Treasury considers the debts uncollectible or out of business. The MSP Contractors shall determine whether collection by litigation is a viable option for debts showing a status code of RU (RTA – Uncollectible) or RN (RTA – Out of Business). If so, follow established procedures for referring the debts for litigation (See Chapter 4, § 70 of the Medicare Financial Management Manual (CMS Pub. 100-06)). The MSP Contractors shall also consider whether all other appropriate actions to collect debts have been taken before recommending debts for Write-off/Closed, including the procedures in Chapter 4, § 70 of the Medicare Financial Management Manual (CMS Pub. 100-06)).