Frequently Asked Questions

Who do I contact to obtain MRO 14 Reports?

MRO14's are also known as Paid Claims Reports (PS&R's).

All requests for Nursing Home MRO-14's should be addressed to Mary J. Mason of the DHH Rate & Audit Review Section at mary.mason@la.gov, phone (225) 342-4130, fax (225) 342-1834 or (225) 342-1411.

For Hospital MRO-14:  Please contact Andrea Taylor (225) 342-3927

For ICF/MR MRO-14:  Please contact Enrika Buggage (225) 342-1999

What are the Department’s criteria for selecting ADHC facilities for audit?

ADHC’s:
a.       Any new facility that has been in operation for at least a year.

b.      The facilities that have been operating the longest without an audit.

How many copies of the Nursing Home Cost Report and supportive documentation need to be submitted to Rate & Audit Review to comply with the cost reporting requirements?

“The following should be submitted for each facility: Two (2) paper copies and three (3) electronic copies on either diskette or CD are required in each case for the Medicare cost report (CMS Form 2540-96) including the Compliance Questionnaire (CMS Form 339), the Louisiana Medicaid Supplemental Cost Report, and the Medicare home office cost report (CMS Form 287-92) if applicable.”  Rate and Audit Review also needs paper copies of all the attachments submitted with the cost report packet.

I’m a provider that is not certified for Medicare. Do I still have to file the Medicare cost report for Medicaid purposes? If I have a home office, do I complete and file the Medicare Home office cost report form for Medicaid purposes only?

Yes, you must file the Medicare cost report for Medicaid purposes.  Louisiana’s Medicaid program has adopted the Medicare skilled nursing cost report, CMS Form 2540-96 and the Medicare Home Office Cost Statement, CMS Form 287-92 for Medicaid cost reporting purposes. See LAC 50:VII.1303.  Nursing facilities participating in the Louisiana Medicaid program must complete the skilled nursing facility cost report adopted by the Medicare program (CMS Form 2540-96) in order to satisfy cost reporting requirements. For nursing facilities under the ownership of a hospital, the cost reporting document is the Health Care Financing Administration (HCFA) 2552.

My home office cost report has a different year-end than the nursing facility. Do I have to complete a home office cost report that corresponds to the facility’s year-end? If not, how do I allocate home office costs to the nursing facility?

The home office is not required to have the same year-end as the facility.  The home office should file its cost report based on the home office’s year-end.  When the home office accounting period differs from the cost reporting period of the related facilities, the allowable home office costs of the provider for the period covered by the home office cost statement should be included in the provider’s cost report.  An amount of allowable home office costs for the provider for the portion of its reporting year not covered by the home office statement will be tentatively projected at a rate not in excess of the previous year’s home office costs as set forth in the applicable home office cost statement.

Example:  The home office has an accounting year ending August 31, 2002.  For that year, home office costs of $120,000 were allocated to Provider A and $84,000 to Provider B.  Provider A’s reporting year ends on December 31; Provider B’s reporting year ends on March 31.

Of the $120,000 costs allocated to Provider A, $40,000 applies to its reporting year ended 12/31/01, covering the period from 9/1/01 to 12/31/01; and $80,000 applies to its reporting year ending 12/31/02, covering the period from 1/1/02 to 8/31/02.  Therefore, in its cost report for the year ending 12/31/02, Provider A may include home office costs of $40,000 projected for the period 9/1/02 to 12/31/02, which is not covered by the home office cost statement ($10,000 per month x 4 months).

Of the $84,000 allocated to Provider B, $49,000 applies to its reporting year ending 3/31/02, covering the period from 9/1/01 to 3/31/02; and $35,000 applies to its reporting year ending 3/31/03, covering the period from 4/1/02 to 8/31/02.  Therefore, in its cost report for the year ending 3/31/03, Provider B may include home office costs of $49,000 projected for the period 9/1/02 to 3/31/03, which is not covered by the home office cost statement ($7,000 per month x 7 months).

Then, the following year, when actual costs are determined, the projected amounts will be adjusted to agree with the actual amounts, and appropriate adjustments made.

Source:  Provider Reimbursement Manual Part I, Section 2150.3

My year-end does not correspond with the state fiscal year. Do I have to file a cost report for the period ending June 30th or do I file a cost report that corresponds with my usual fiscal year-end?

Facilities are required to file the Medicare cost report based on their fiscal year end. The cost reporting period begin date shall be the later of the first day of the facility’s fiscal period or the facility’s Medicaid certification date. The cost reporting end date shall be the last day of the facility’s fiscal period.

The nursing facility was certified for Medicare during the middle of the nursing facility’s fiscal year. Do I file the partial year Medicare cost report to DHH or do I have to complete the Medicare cost report for the entire Medicaid fiscal period?

The facility must file the Medicare cost report for the entire year to meet Louisiana’s Medicaid cost reporting requirements. The cost reporting period begin date shall be the later of the first day of the facility’s fiscal period or the facility’s Medicaid certification date. The cost reporting end date shall be the last day of the facility’s fiscal period.

Can my fiscal year for Medicaid cost reporting purposes be different from my fiscal year for Medicare cost reporting purposes?

Yes, your fiscal year for Medicaid cost reporting purposes may be different from your fiscal year for Medicare cost reporting purposes. However in doing this you will be completing two separate cost reports using the CMS Form 2540-96.

NH - When preparing the nursing facility or home office cost reports, do I make Medicaid required adjustments to the Medicare cost report?

No, you should complete the Medicare cost report as required by the Medicare Provider Reimbursement Manual. All Medicaid required adjustments should be made only on the LA Supplemental Cost Report schedules.

Where can I get a copy of Medicare’s Provider Reimbursement Manual?

A subscription service manual is available for purchase on the Internet at http://bookstore.gpo.gov/regulatory/health.html. You can also call the U.S. Government Online Bookstore toll free at 1-866-512-1800. The stock number is 917-007-00000-4. This comprehensive sourcebook can keep you informed of the latest changes in Medicare policies and procedures and help you determine the reimbursement for Medicare services you provide. This manual is formerly known as HCFA Publication 15-1. The price is $327.00.  You can also download a copy of the manual at www.cms.gov/manuals/cmstoc.asp.  Also, CCH offers the Medicare and Medicaid Guide. The Guide is a comprehensive resource containing manuals, court decisions, cost report forms, detailed instructions, Medicaid information, and latest developments. This Guide can be located on the web at http://onlinestore.cch.com. You can telephone 1-800-449-9525 for more information.

What is the most recent salary limit for administrators and/or assistant administrators? Does this limit apply to employees at my home/central office?

Yes, salary limits apply to home office personnel also.

Where can I get cost report instructions?

The cost report instructions for ICF/MR and Adult Day Health Care facilities are included in the LDH Residential Care Rate Setting Manual.  A copy of this manual can be obtained from Rate and Audit Review.  Also, instructions related to the cost report software are integrated into the Cost Report help files on the Medimax web site.

What are the Department’s criteria for selecting Nursing facilities for audit?

NURSING HOMES:
a.       The facility was a Skilled Nursing – Infectious Disease (SN-ID) and/or a Skilled Nursing – Technology Dependent Care (SN/TDC) provider the previous year.

b.      The facility did not submit a cost report for the previous year.

c.       The facility had a disclaimer on the previous year’s audit.

d.      The facility had problems with provider fees..

e.       The facility had not been audited in the previous two years.

What is the definition of a MDS Medicaid delinquent assessment in Louisiana?

According to the Louisiana MDS Rule, a Delinquent MDS resident assessment is defined as "an MDS assessment that is more than 121 days old, as measured by the R2b date field on the MDS."

Remember that this definition is applied to the Case Mix system and does not replace the federal obligation to complete a standard (comprehensive or quarterly) assessment every 92 days.