At the end of August, the Centers for Medicare & Medicaid Services (CMS) released an updated list of frequently asked questions regarding Medicare providers and the Department of Health and Human Services’ (HHS) Provider Relief Fund, as well as the Small Business Administration’s Paycheck Protection Program payments. The exhaustive list of questions and answers seeks to equip providers with the information they need to, among other things, report the following:
> Provider Relief Fund payments
> Small Business Administration (SBA) loan forgiveness amounts
Healthpac Computer Systems is committed to staying on top of all industry trends, and we will gladly work with your practice to ensure you know how to implement these new guidelines within our billing software.
Recently Added CMS Cost Reporting FAQs
With the medical billing landscape constantly shifting amidst the current pandemic, these updated FAQs are geared towards informing and laying the groundwork for consistent billing and cost reporting practices. Let’s take a look at the additions most recently added in August of this year.
Section V. – Question 1 – Cost Reporting
This question poses whether CMS will delay the filing deadline for cost reports impacted during the COVID-19 PHE (Public Health Emergency), and the answer is yes. CMS will delay the filing deadline as outlined in this chart:
|Cost Reporting Period||Initial Due Date||Extended Due Date||Revised Due Date|
Section V. – Question 2 – Cost Reporting
This question inquires how the Provider Relief Fund payments will be reported on the Medicare Cost Report in terms of revenue, and the answer states that all providers are required to report PRF payments on a statement of revenues, and the revenue amount must be labeled as COVID-19 PHE.
PRF payment amounts must be reported in aggregate on the following forms:
> Hospital – form CMS-2552-10, Worksheet G-3, line 24.50
> Skilled Nursing Facility – form CMS-2540-10, Worksheet G-3, line 24.50
> HHA – form CMS-1728-94, Worksheet F-1, line 31.50
> Hospice – form CMS-1984-14, Worksheet F-2, column 3, line 16.50
> ESRD – form CMS-265-11, Worksheet F-1, line 31.50
> FQHC – form CMS-224-14, Worksheet F-1, line 28.50
> CMHC – form CMS-2088-17, Worksheet F, line 20.50
Section V. – Question 3 – Cost Reporting
This question asks how the Small Business Administration (SBA) loan forgiveness amounts will be reported on the Medicare Cost Report in terms of revenue, and the answer states that if a provider receives forgiveness for the SBA loan, or any portion thereof, the provider must report the forgiven amount on the cost report’s statement of revenues for informational purposes (updated: 9/11/2020 pg. 100).
The loan forgiveness amount must be reported in aggregate, on the same cost report forms, worksheets, and lines, as noted above for the PRF payments.
If the provider does not receive forgiveness for the SBA loan, or any portion thereof, the provider reports no forgiven amounts on the Medicare Cost Report. If the provider pays interest on any portion of the SBA loan, the provider may report the interest expense, similar to other interest expenses, on the cost report.
Section V. – Question 4 – Cost Reporting
This question asks whether PRF payments should offset expenses on the Medicare Cost Report, and the answer states that providers should not adjust the expenses on the Medicare Cost Report based on PRF payments received.
It does say, however, that providers must adhere to HRSA’s guidance regarding appropriate uses of PRF payments, in order to ensure that the money is used for permissible purposes (namely, to prevent, prepare for, or respond to coronavirus, and for health care-related expenses or lost revenues that are attributable to coronavirus). Learn more details about the terms and conditions of permissible PRF use.
Section V. – Question 5 – Cost Reporting
This question asks whether SBA loan forgiveness amounts should offset expenses on the Medicare Cost Report, and the answer is no, unless those amounts are attributable to specific claims such as payments for the uninsured. The terms and conditions of the SBA loan forgiveness, overseen by the SBA, include employee retention criteria, and the funds must be used for eligible expenses.
Additional information can be found at: https://www.sba.gov/fundingprograms/loans/coronavirus-relief-options/paycheck-protection-program and https://home.treasury.gov/system/files/136/PPP–Loan-Forgiveness-FAQs.pdf.
Section V. – Question 6 – Cost Reporting
This question asks whether hospitals should be reimbursed through the PRF Uninsured Program on Worksheet S-10, and the answer is no. Subsection (d) hospitals that receive PRF payments from the Uninsured Program must not report charges reimbursed through that program for uninsured COVID-19 patients on Worksheet S-10.
Section V. – Question 7 – Cost Reporting
This question asks if PRF payment amounts for lost revenue not directly attributable to patient-specific claims be used to offset expenses on the Medicare Cost Report, and the answer here is no. Providers must adhere to HRSA’s guidance regarding appropriate uses of PRF payments, in order to ensure that the money is used for permissible purposes.
Section V. – Question 8 – Cost Reporting
This question asks whether you can claim your employer’s share of Social Security tax if you elected to defer in accordance with section 2302 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as an accrued liability in the year that the costs were incurred. The answer is yes, but in limited circumstances only. The deferral applies to deposits and payments of the employer’s share of Social Security tax that would otherwise be required to be made during payroll tax deferral period that begins on March 27, 2020, and ends December 31, 2020. Providers that elect to take advantage of this payment deferral may expense this liability on the Medicare Cost Report in the year the costs were incurred.
Trust Healthpac For All of Your Medical Software Billing Needs
Reporting compliance is easy when you have Healthpac Computer Systems in your corner. Our trusted team of knowledgeable medical billing software experts will ensure that you fully understand the implementations of our robust medical billing software and that all of your questions regarding revenue reporting, code compliance, and adherence to recently updated guidelines are on the right track.
The members of Healthpac’s training department have extensive backgrounds in healthcare billing and software. We send weekly emails and offer comprehensive monthly training sessions to guarantee you get the answer you need right when you need them. We also host an annual users’ meeting to promote knowledge and best-practice sharing. Let us help you level up your medical billing by contacting our team today!
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View the entire list of FAQs put forward by CMS and let us know how we can help you succeed while navigating these unprecedented times.