1. Presented by: Mark Hudak
Wage Index Update
Presented by:
Mark Hudak

2. Items to Cover
Correspondence
CMS Deadlines
Wage Index Items

3. Correspondence Wage Index contacts at Novitas Solutions for FY 2017.
Name: Jayme Carothers
Phone: (412)
Name: Greg Mahoney
Phone: (412)

4. CMS Deadlines 9/02/2016 - WI Revisions due from providers
10/24/2016 – Completion of all Home Office Audits
11/04/2016 – MAC notification to State Hospital Associations for failure to respond
11/15/2016 – Completion of all Wage Index desk reviews as well as transmission of all the HCRIS to CMS/DAC (Division of Acute Care)

5. CMS Deadlines
01/30/2017 – Release of revised FY2018 wage index and occupational mix files as PUF’s on the CMS web site.
02/17/2017 – Deadline for MACs to receive requests and documentation to show mishandling or incorrect MAC adjustments. No new data or backup should be included with this request.

6. CMS Deadlines
03/24/2017 – MACs submit final revised HCRIS wage data to CMS/DAC as well as and send written responses to requests received by 02/17/2017 noted in previous slide.
04/05/2017 – Deadline for Hospitals to appeal to CMS (appeals go to CMS, not MAC)

7. CMS Deadlines
04/28/2017 – Release of final FY2018 wage index and occupational mix data PUF’s on CMS web page.
05/30/2017 – Deadline for Hospitals to submit corrections for mishandling of data posted in the 04/28/2017 posting to CMS website.

8. Items needed for all Wage Index Reviews
Support for total salaries/hours reported on W/S S-3 Part II Line 1 (WTB can support salaries; payroll report can support hours)
Support for physician salaries/hours reported on W/S S- 3 Part II Line 5 (Total physician compensation from working trial balance should reconcile to W/S A-8-2 Line )
We probably will request a reconciliation between W/S A-8-2 and W/S S-3 Part II physician salaries)
Support for qualified defined-benefit pension plan contributions for the current cost report period (IRS 5500 or bank statements

9. Changes for Current Year
CMS is requesting more detailed explanations from MAC for variances outside accepted range.
CMS specifically states that consistency with the prior year is not an explanation for the variance.
IF AHW is consistently lower or higher than average AHW, CMS wants to know why. Therefore, the MAC will be requesting that explanation.

10. Changes for Current Year
Auditors may request additional information for contract labor this year
CMS is wary that only high AHW (average hourly wages) are being reported on that line
Wage-Related Cost variances outside range will be scrutinized more heavily this year.
Specific information will be requested by auditor.
Simply stating that health insurance went up and appears reasonable will not satisfy CMS.

11. QUESTIONS??