Items or services furnished to Medicare beneficiaries in state or local custody
The regulations at 42 CFR 411.4(b) describe the special conditions that must be met in order for Medicare to make payment for individuals who are in custody and states:
2. The state or local government entity enforces the requirement to pay by billing all such individuals, whether or not covered by Medicare or any other health insurance, and by pursuing the collection of the amounts they owe in the same way and with the same vigor that it pursues the collection of other debts."
For inpatient claims where the incarceration period spans only a portion of the stay, hospitals should identify the incarceration period by billing as noncovered all days, services, and charges that overlap the incarceration period.