Code of Federal Regulations Title 42. Public Health § 42.401.613 Compromise of claims

(1) Bear a reasonable relation to the amount of the claim;  and

(2) Be recoverable through enforced collection procedures.

(1) The age and health of the debtor if the debtor is an individual;

(2) Present and potential income of the debtor;  and

(3) Whether assets have been concealed or improperly transferred by the debtor.

(1) Inability to pay. CMS may compromise a claim if it determines that the debtor, or the estate of a deceased debtor, does not have the present or prospective ability to pay the full amount of the claim within a reasonable time.

(2) Litigative probabilities. CMS may compromise a claim if it determines that it would be difficult to prevail in a case before a court of law as a result of the legal issues involved or inability of the parties to agree to the facts of the case. The amount that CMS accepts in compromise under this provision will reflect—

(3) Cost of collecting the claim. CMS may compromise a claim if it determines that the cost of collecting the claim does not justify the enforced collection of the full amount. In this case, CMS may adjust the amount it accepts as a compromise to allow an appropriate discount for the costs of collection it would have incurred but for the compromise.