Debt Excluded from Referral

70.6 – Debt Excluded from Referral (Rev. 12438; Issued: 01-04-24; Effective: 02-06-24; Implementation: 02-06-24) Debts excluded from referral include: a) Debts in appeal (pending at any level); b) Debts where the debtor is in bankruptcy or, in the case of an insurance company, in State Ordered liquidation proceedings (See § 80 of this Chapter); c) Debts under a fraud and abuse investigation, if the MSP Contractor has received specific instructions from the investigating unit (i.e., Office of Inspector General or HHS Office of the General Counsel) not to attempt collection; d) Debts where the identified debtor received the last demand letter is the employer/ other plan sponsor and the employer/ other plan sponsor is a Federal agency; e) Debts where the debtor is deceased; f) Debts where CMS has identified a specific debt or group of debtors as excluded from DCIA referral; g) Debts where there is a pending written request for a waiver or compromise; h) Debts less than $25.00 (principal and interest); and i) Debts of $100.00 or less (principal and interest) where NO Tax Identification Number (TIN) is available. (Cross-Servicing Technical Bulletin dated February 13, 2004 (Number 04-03) states: “Treasury will only accept debts of $100.00 or less (principal and interest) if the TIN is provided”). NOTE: In the event the waiver or compromise decision is unfavorable to the debtor, the MSP Contractor shall continue the debts on to debt referral. NOTE: For debts of $100.00 or less (principal and interest) and having NO TIN, MSP Contractors shall access and search their database to identify if there is a TIN for a debtor of the same name and address. If the TIN can be matched to the debtor, follow the DCIA referral process. If the MSP Contractor is NOT able to identify the TIN of the debtor by searching its database, document efforts taken to find the TIN and follow instructions regarding write-off. MSP Contractors are reminded that the term TIN includes either the Employer Identification Number (EIN) of an entity or an SSN (for a beneficiary debtor).