September 22, 2022
CMS has issued revised instructions for the home health cost report. The revisions include minor technical corrections along with instructions to calculate the varying sequestration amounts allocated for 2022.
The following pages (47-49) of the instructions address how home health agencies are to calculate sequestration for the 1% effective April 1 and 2% effective July 1. It is a formula based on the number of days.
Line 32. –Enter the sequestration adjustment amount from the PS&R report (claims-based amounts). In accordance with §3709 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as amended by §102 of the Consolidated Appropriations Act of 2021, §1 of Public Law 117-7, and §2 of the Protecting Medicare and American Farmers from Sequester Cuts Act of 2021 (PAMA), the sequestration adjustment for the period of May 1, 2020, through March 31, 2022, is not applicable. In accordance with §2 of the PAMA 2021, the sequestration adjustment is 1 percent for the portion of the cost reporting period from April 1, 2022, through June 30, 2022; and 2 percent for the portion of the cost reporting period on or after July 1, 2022.
Line 32.75.–For cost reporting periods that overlap or begin on or after May 1, 2020, calculate the sequestration adjustment for non-claims based amounts as [(2 percent times (total days in the cost reporting period that occur during the sequestration period, divided by total days in the entire cost reporting period, rounded to six decimal places), rounded to four decimal places)) times the sum of (line 9, columns 1 and 2, plus line 26, plus or minus line 29 and its subscripts)]. If the sum of line 9, columns 1 and 2, plus line 26, plus or minus line 29 and its subscripts is less than zero, do not calculate the sequestration adjustment. In accordance with §3709 of the CARES Act, as amended by §102 of the Consolidated Appropriations Act of 2021, §1 of Public Law 117-7, and §2 of the PAMA, do not apply the sequestration adjustment to the period of May 1, 2020, through March 31, 2022. In accordance with §2 of the PAMA 2021, for cost reporting periods that overlap or begin on or after April 1, 2022, calculate the sequestration adjustment amount for the period of April 1, 2022, through June 30, 2022, as follows: [(1 percent times (total days in the cost reporting period that occur from April 1, 2022, through June 30, 2022, divided by total days in the entire cost reporting period, rounded to six decimal places), rounded to four decimal places), times the sum of (line 9, columns 1 and 2, plus line 26, plus or minus line 29 and its subscripts)]; and for cost reporting periods that overlap or begin on or after July 1, 2022, calculate the sequestration adjustment amount as follows: [(2 percent times (total days in the cost reporting period that occur on or after July 1, 2022, through the end of the cost reporting period, divided by total days in the entire cost reporting period, rounded to six decimal places), rounded to four decimal places) times the sum of (line 9, columns 1 and 2, plus line 26, plus or minus line 29 and its subscripts)].
Source: NAHC
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