Program_Memos / 2001 / B-01-31

Why This Topic Matters

It helps Medicare program personnel understand a major federal debt-collection process change and how it affects delinquent debt tracking, referrals, and financial reporting.

Article Sections

1. Background

   Introduces the memorandum purpose, scope, and the federal debt collection context that drives the instructions. It also notes categories of debts excluded from this guidance.

2. Debt Selection

   Describes the operational process for identifying debts that require referral and for supporting ongoing implementation. It outlines the use of internal reports and system-based selection methods.

3. Debt Collection Improvement Act of 1996 Language – “Intent to Refer” Letter

   Provides guidance on the required notice process and how the referral letter fits into the overall collection workflow. It also addresses responses to debtor inquiries and follow-up handling.

4. PSOR Updates

   Explains the need to update program tracking records when referral notices are sent or repayment arrangements change. It focuses on maintaining accurate status information in the reporting system.

5. Debt Collection System (DCS)

   Describes the database entry process used to certify debts for referral and the access controls around the system. It also notes what the system is used for at the central office level.

6. Actions Subsequent To DCS Input

   Covers what happens after a debt is entered into the referral system, including the shift in collection responsibility and the handling of later changes. It also addresses reporting and form-based communication between offices.

7. Financial Reporting

   Discusses how referred debts are tracked for financial statement purposes and how responsibility for reporting differs by location. It also addresses interest accrual and collection reporting.

8. Funding

   Summarizes budget and support considerations for implementation, including potential requests related to workload and system support. It also identifies the activity code used for funding requests.

9. Attachment 1: Debt Collection Improvement Act of 1996 (DCIA) Required Language

   Contains the required notice language framework and related debtor-facing content for the referral letter. The attachment includes multiple topical subsections covering repayment, due process, bankruptcy, and related notices.

10. Attachment 2: Recall/Adjustment Form

    Presents the form used to document changes to debts that have been entered into the referral system. It includes the form layout and instructions for completing the sections.

11. Attachment 3: Collection Reconciliation/Acknowledgement Form

    Provides the form used to reconcile collections and acknowledge related debt updates across locations. It also includes instructions for non-MSP collections and reporting responsibilities.