PPS Rates — October 1, 2007
We have attached the PROPOSED October 1, 2007 Ohio PPS Rates. The Bush Administration’s 2008 budget has not been finalized. There is a possibility that the rates could be reduced by approximately 3.3%. With the budget remaining open, it is not known at this time if the reduction in the PPS rates will be retro-active to October 1, 2007.
Bad Debt
Bad debt claimed on the Medicare cost report will continue to be reimbursed at the same percentages as 2006. Medicare bad debt claimed for private pay residents will be reimbursed at 70%, and Medicare bad debt claimed for dual eligible residents will still be reimbursed at 100%.
Low Utilization Cost Report Requirements
Currently, National Government Services (NGS) are in the process of finalizing rules for filing low utilization cost reports. Based on our conversations with Kathy Guran, it is possible that new requirements will affect filing of 2007 Medicare cost reports. Per Kathy, NGS is in the process of negotiations with CMS. The current position of CMS is all cost reports that include claims for bad debt reimbursement have to be filed as full cost reports. We will keep you posted of any changes with this issue.
If you have any questions regarding the schedule, please do not hesitate to contact your Plante & Moran representative.