COVID-19 Relief Payment FAQs for Medicare Cost Report

Aug. 27, 2020

The Centers for Medicare & Medicaid Services on Wednesday released additional frequently asked questions for Medicare providers regarding the Provider Relief Fund (PRF) and Paycheck Protection Program payments. The FAQs provide guidance on how to report PRF payments, uninsured charges reimbursed through the Uninsured Program administered by Health Resources and Services Administration, and Small Business Administration (SBA) Loan Forgiveness amounts.

Of particular interest, the FAQs note that PRF payments should not offset expenses on the Medicare Cost Report. Providers should not:

  • Adjust expenses based on PRF payments received;   
  • Report charges reimbursed through PRF payments from the Uninsured Program for uninsured COVID-19 patients on Worksheet S-10;   
  • Offset expenses with PRF payment amounts for lost revenue not directly attributable to patient-specific claims; or   
  • Offset SBA Loan Forgiveness amounts against expenses unless those amounts are attributable to specific claims such as payments for the uninsured;

In addition, providers that receive forgiveness for an SBA loan must report the forgiven amount on the cost report’s statement of revenues for informational purposes. Providers that deferred their share of Social Security tax in accordance with section 2302 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act can in limited circumstances claim it as an accrued liability in the year the costs were incurred.