Why Does my CBSA Claim Code not Match my Cost Report Code?

The CBSA codes for HHAs are changing, due to the wage index transition.  This may mean one CBSA code on your claims and your PS&R, but a different one on your 2015 Medicare cost report.

CBSA, as explained in our blog “How Does a PPS Cost Report Work,” stands for “Core Based Statistical Area.”  Different geographic areas have different five-digit codes, and Medicare reimbursement for labor costs is determined by the wage index in each CBSA.

As mentioned, some of these codes are changing, reflecting differences in the wage index.  Some codes will change permanently, and the new CBSA is effective from 2015 (now).  While the wage indexes are transitioning, there are some new temporary codes for claims for 2015 only.  The temporary codes all begin with the first two digits “50”.

However, CMS has yet to issue final instructions as to the new CBSAs and the Medicare cost report. Follow our blog for the latest updates.

If your cost report is due shortly, or you otherwise need assistance, please feel free to contact us, and we will do our best to help.

Update:  Final instructions have been issued.  See our blog “CBSAs and HHA Cost Reports – The Final Word!”

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