CMS Finalizes Medicare Home Health Agency Cost Report ChangesĀ 

Situation Report | October 5, 2020

In a new transmittal, the U.S. Centers for Medicare and Medicaid Services (CMS) recently updated the Medicare Provider Reimbursement Manual by making significant changes to the home health agency (HHA) cost report.

Specifically, CMS introduces Chapter 47, HHA Cost Report, Form CMS-1728-20, effective for cost reporting periods beginning on or after January 1, 2020 and ending on or after December 31, 2020. These new instructions and forms must be filed by free-standing HHAs and free-standing HHAs with HHA-based Hospices.

The following include some of the HHA Cost Report worksheets where CMS made significant changes:

  • Worksheet S-3, Part I: Census Statistics
  • Worksheet S-3, Part II: Full Time Equivalents (FTEs)
  • Worksheet S-3, Part IV: Prospective Payment System (PPS) Activity Data
  • Worksheet S-3, Part V: Occupational Wage Data
  • Worksheet A: Trial Balance of Expenses
  • Worksheet A-8-1: Related Party/Home Office Costs
  • Worksheet F-1: Statement of Revenue and Expenses
  • Worksheet O: HHA Based Hospice Costs

While CMS extended the 2019 Medicare Cost Report due date multiple times because of the COVID-19 public health emergency (PHE), the 2020 Medicare Cost Report that includes all of these changes is expected to be due May 31, 2021 (unless CMS extends the deadline) for most HCA CHHA members who operate on a calendar year basis.

HCA encourages our members who file a Medicare Cost Report to review carefully the updated CMS Transmittal.