Dear Administrator - 2005 Personal Care Cost Report Software

December 1, 2006

RE: 2005 Personal Care Cost Report Software

Dear Administrator:

In accordance with Section 505.14 of Title 18 NYCRR, all personal care services agencies that have contracts with a local social services department for the provision of personal care services to Medicaid recipients shall complete and file annual financial and statistical reports as the Department of Health may require on forms supplied by the Department.

As you know, the Department has been engaged in protracted negotiations with the accounting industry, as represented by the American Institute of CPA's (AICPA), on the specific language to be included in the accountant's certification for the Personal Care cost report. These discussions have now been finalized, and the 2005 Personal Care Software is now available on the Department's Internet-Based Health Provider Network.

This report will be used to report your actual 2005 costs and statistics and may be used for the promulgation of Personal Care Services Medicaid Rates for the year 2007. If you are a new provider who opened during 2005 or 2006, and therefore do not have actual costs and statistics for the full year 2005, you will need to report your budgeted costs and estimated statistics for 2007. All other agencies that were in operation prior to January 1, 2005 must submit a properly certified report with actual costs and statistics for 2005.

The 2005 Personal Care Provider Cost Report (PCPCR05) must be filed with the Department no later than February 28, 2007. The Bureau must also receive the originally executed copies of both the operator's certification and the accountant's opinion no later than March 14, 2007. Effective in 2004, the regulations governing the submission of personal care cost reports were amended to institute a penalty for agencies that fail to comply with the annual cost report requirements in Title 18 NYCRR Section 505.14(h)(7). Specifically, Section 505.14(h)(7)(i)(a)(6) has been added to require that a 2% penalty be applied to the current rate if an agency fails to file the required cost report on or before the due date. The regulations require such penalty to be applied effective the first of the month following the due date and continuing until the end of the month of cost report submission. The regulations also state that failure to timely file the required certifications (within two weeks of report submission) shall render a cost report incomplete and invoke the 2% penalty for failure to file.

Health Provider Network (HPN) Address

The reports will be filed electronically using the Health Provider Network (HPN). You may download the software from the department's Internet-Based Health Provider Network. This may be accessed at https://commerce.health.state.ny.us/hpn/. Once you have reached this page, you will need to access the section entitled "Programs" and then click on the Program Area for the Division of Health Care Financing. Once you have reached our division's Home Page, you may access the Personal Care Agencies Cost Report 2005 (PCPCR05) for download.

Enclosed with this letter are instructions on using the HPN and on installing the software onto your computer.

Operator and Independent Accountant Certifications

Based on recent agreement with the accounting industry, as represented by the American Institute of CPA's (AICPA), the software contains the approved revisions to the accountant's certification form. It is important to note this accountant's certification included in the 2005 cost report is the only acceptable accountant's certification that can be submitted to comply with the filing requirements of Part 505.14(h)(7)(i)(a)(9). The Department can accept absolutely no alteration to the certification. In order to insure compliance with the filing requirements of Part 505.14(h)(7)(i)(a)(9) for 2005, agencies should insure that the accountant's certification submitted for their cost report is the exact certification form as included in the 2005 software package. Any other form of accountant's certification will be rejected and the cost report will not be acceptable in accordance with Part 505.14(h)(7)(i)(a)(9).

As a result of the certification discussions with the accounting industry, the operator's certification has also been revised to further clarify that the operator is responsible for insuring that the cost report is completed in accordance with the cost report instructions. In accordance with Part 505.14(h)(7)(i)(a)(8), the Department can accept no alteration to the operator's certification included in the 2005 software.

The Bureau must receive the original executed copies of both the operator's certification (Schedule E) and the accountant's opinion (Schedule F) no later than March 14, 2007. These statements must be printed from the software and the original hard copy must be mailed to:

Mr. Timothy E. Casey
New York State Department of Health
Bureau of Long Term Care Reimbursement
943 Corning Tower Building
Empire State Plaza
Albany, NY 12237-0709

If a facility files multiple reports, certifications are required only for the "final" report. The DCN of the "final" report must appear on both Schedule E (Operator's Certification) and Schedule F (Accountant's Opinion). If multiple reports are filed, the Department will deem the last report filed for a district contract as the facility's "final" report, unless the agency notifies the Bureau, in writing, that an earlier submission should be recognized as the "final" report. The agency must clearly identify such earlier submission by DCN as the "final" report and insure that the certifications are appropriately completed for the "final" report.

Changes for the 2005 Cost Report

Part I – General Agency Information has been modified to include additional lines for agencies to report both the cost and number of background checks incurred in 2005 in accordance with the Criminal History Record Check regulations, Part 400.23 of Title 10.

Current Agency Charge Information

Providers must report their agency's current charges on "Part 1- General Information, Public Fee Schedule" as part of the electronically filed cost report. This should reflect the most currently available public-fee information applicable to the 2007 rate year.

Filing the Report

Once your cost report passes all edits and is finalized, a Declaration Control Number (DCN) will appear on the computer screen and each page of report printouts. Any change in the cost report will cause the DCN to be erased and another DCN will not be generated until the report is finalized again. Please refer to the HELP section of the PCPCR software for information on creating the Final Cost Report and the DCN Number.

The Department will be accepting reports when you receive this letter. When the report has been successfully uploaded and filed with the Department, the agency will receive an electronic acknowledgment indicating the report is accepted and echoing back the DCN for the agency's report. This will happen each time that the agency files a report with a different DCN. Reports with the same DCN will be rejected after the first report is accepted.

As noted above, the cost report submission is incomplete until the Bureau receives the original executed copies of both the operator's certification (Schedule E) and the accountant's opinion (Schedule F).

Should your Personal Care Agency have any problems or have questions regarding the completion of the electronic cost report please call the Personal Care Rate Unit at (518) 473-8910.

Should you have any problems or questions regarding the electronic mail network please contact the HELP line at 1-866-529-1890.

Sincerely,

Kathleen E. Gill
Director
Bureau of Long Term Care Reimbursement

Enclosures