CMS changes policy on payment suspension for late cost reports

CMS recently announced that payment suspensions for Medicare providers and suppliers that fail to file timely cost reports could either be made in part or in whole. Previously, payment suspensions were only made in whole; CMS changed the policy to allow flexibility in determining the amount of payment

For cost reports that are up to 60 days late, 20 percent of Medicare payments will be suspended. A 50 percent payment suspension will be applied to cost reports that are 61 to 120 days late. Cost reports that are 121 days or more late will face a 100 percent payment suspension. The PM (A-02-128) was effective January 1, 2003. To read it, go to www.cms.hhs.gov/manuals/pm-trans/ A02128.pdf.