The final word for 2015 HHA Medicare cost reports and the changing CBSAs is out!

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”.

Though the CBSA codes for HHAs are changing due to the wage index transition, this will not affect the method of entry on your Medicare Cost Report.  CMS has decided to allow the “50xxx” codes on the Medicare cost reports.  For the cost report preparer, this means that you simply have to enter the codes as they show up on your PS&R.  You need not pay attention to the fact that the codes are different from last year’s and will be different again next year.

If you use PPS’s Med-Calc software, you can simply use the automatic PS&R Import Feature, and, as in the past, the PS&R information will populate automatically.