What Is Medicare PIP? 
PIP stands for periodic payment periods . In regards to Medicare , this is the system that sends bi-weekly payments to a hospital on the PIP program and are based on the hospital 's estimate of applicable Medicare reimbursement for the current cost report period . When such payments are received , a cash account in the Unrestricted Fund is debited and a PIP Clearing Account is credited for the amount of the payment . When applicable , Medicare charges are billed to the intermediary , at which time the PIP Clearing Account is debited and patient 's account receivable is credited . At year-end , adjustments must be made to eliminate any remaining balance in the PIP Clearing Account and to reflect the amount receivable from , or due to , the Medicare intermediary . 