As several of our providers have established extended repayment plans due to SSI adjustments or outlier reconcilliations, we feel it necessary to remind providers how the interest related to the overpayments needs to be treated in the general ledger so that the Medicare Cost Report can be properly prepared.
In accordance with PRM I Section 202.1, interest related to Medicare Overpayments is not allowable. Hence, if you have incurred such interest it needs to be recorded in a seperate general ledger account so that the amount can be identified during Mediare cost report preparation and maintain an adequate audit trail from the cost report to the trial balance. (more…)