Collection of MSP Debts

60.2 – Collection of MSP Debts (Rev. 12438; Issued: 01-04-24; Effective: 02-06-24; Implementation: 02-06-24) MSP Contractors have primary responsibility for collecting all MSP debts and are expected to pursue recovery of all accounts receivable (AR) to the fullest extent possible, regardless of the identity of the debtor. MSP Contractors shall follow all financial reporting requirements contained in the Medicare Financial Management Manual (CMS Pub. 100-06), Chapter 5. However, when ARs cannot be collected, an appropriate write-off is required. Debts that are over 180 calendar days delinquent (240 calendar days old for MSP debts) will be systematically classified as “Currently not Collectible” (CNC). The CNC debt will not be recognized as an active AR for financial statement reporting purposes, because to do so would overstate the true economic value of the assets on the financial statements. While CNC debts are not reported as an AR on the financial statements, MSP Contractors must continue appropriate recovery efforts for these debts until they are recommended and approved by CMS for Write-Off/Closed.