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Interim Rate Requirements

Rate Review Frequency:

  • Acute hospitals - two rate reviews each cost reporting period
  • Non-PIP Critical Access Hospitals(CAH) - two rate reviews each cost reporting period
  • PIP Critical Access Hospitals (CAH)– four rate reviews, one each quarter of the cost reporting period
  • Federal Qualified Health Centers (FQHC) - As directed by CMS, rates are required only if an FQHC has claimed pass through payments on their Medicare Cost Report. Based on CGS policy, a rate will be calculated when the allowable amount reported on the cost report under tentative review exceeds $35,000 for Direct Graduate Medical Education or Bad Debts. Since vaccine costs can be volatile year to year, CGS policy is to use current period treatment logs to determine payment for current year vaccine costs. Logs can be submitted to j15.reimbursement@cgsadmin.com.
  • Rural Health Clinics (RHC) - two rate reviews each cost reporting period
  • Skilled Nursing Facilities - one rate review each cost reporting period.

Rate Review Scheduling:

  • Rates will be completed based on the findings of the tentative review of original submission of each cost report of the above noted providers except for FQHC providers.
  • For acute hospitals and non-PIP (CAHs), the additional rate will be based on current financial data.  Typically, the request for this current data will be sent to the provider in the third month of the cost reporting period.  This request will detail the documentation needed and where to submit that documentation.
  • CAHs on PIP are required to submit cost and census data each quarter as part of the requirements to remain on PIP.  This data will be used to calculate the quarterly rates.
  • RHCs receive cost-based reimbursement from Medicare.  The cost per visit is capped by a limited established by CMS on a calendar basis.  The additional rate for each RHC is calculated based on the change in the limit each calendar year.

Audit Adjustment Factor (AAF):

  • AAF is determined comparing the original or amended cost report submission and the most recently final settled cost report.  If the provider believes that there are circumstances where the AAF should not be used, for example, errors adjusted on the final settled cost report have been corrected in the current bad debt log, please include that explanation, along with supporting documentation with the submitted documentation.

Updated: 01.17.24

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