What are the penalties for filing a Medicare cost report late or having had your cost report rejected?

If a cost report is not filed on time, that is, postmarked or uploaded to the MCReF portal by the due date, the following will happen.  First, the MAC (fiscal intermediary) will suspend all payments to the facility.  The MAC will send a letter to the facility informing them of suspension of payments.  The MAC also considers all payments paid over the course of the year (interim payments) to be over-payments.  This means that if the cost report does not get filed, the MAC will demand all of those payments back.

Once the cost report is filed, payments will not be reinstated automatically.  The MAC has up to thirty days to review your cost report and determine if it is acceptable.  Once the MAC accepts the cost report, only then will payments be reinstated.  The payments that were withheld in the interim will be restored, as well.

If a cost report gets rejected, it is considered as if it has not been filed (with the exception of a grace period per our blog When is my Medicare Cost Report Due? Are there Any Benefits to Filing Early?).  The same procedure will be followed – suspension of payments until an acceptable cost report has been received and accepted.

Is your cost report late or has it been rejected?  We can prepare it for you – quick turnaround!

Disclaimer:  This blog does not contain legal advice. What it does contain are our best
explanations, advice, and suggestions to help facilities and cost report preparers to understand the cost report forms and offer suggestions for their preparation. Progressive Provider Services assumes no legal responsibility for the content of this blog, nor for cost reports prepared based on the content herein.