Bases for Termination of Collection

60.6 – Bases for Termination of Collection (Rev. 12438; Issued: 01-04-24; Effective: 02-06-24; Implementation: 02-06-24) Title 42 C.F.R. § 401.621 sets forth several bases for the termination of collection action on debts. The criteria set forth in this instruction for Write-off/Closed are based upon CMS’s consideration of a combination of the bases set forth in this regulation rather than any single basis. In some situations, an AR could be written off as closed as of three years from the original demand date solely based upon the statute of limitations for initiating litigation. In other situations, this would not be true because the statute may have been suspended for some period, or started a new due to a particular event, but CMS may have still determined that write-off as closed is appropriate because of the likelihood of recovery and/or the cost of recovery, age, or the application of some other factor. In other instances, CMS may determine that collection action beyond three years is appropriate, in part due to the Governments offset authority.