During a recent webinar, Roberl Liles of Liles Parker (General Compliance Counsel for the American Medical Billing Association) stated the following:
Having a blanket policy to address going after small balances, say $10 or less is a problem. You must not have a policy that says, “XYZ Practice will automatically write off $10 or less balances because it costs more to go after the balance than what is owed.”
Mr. Liles explained that if you have a lot of patients that have a $10 copay and you automatically write off $10 balances, it creates the appearance that you are automatically waiving $10 copays. Instead, you should make a good faith effort to collect all balances, which means at least 3 attempts to collect and then instead of writing off the $10, leave it on the books (A/R) for a while in case the patient makes a new appointment – you could then add it to their balance at that appointment.