Automated CMS System for Tracking Audit and Reimbursement Calculated Tentative

Beginning with cost reports received on or after 7/14/2025, all hospital cost reports will process through the automated CMS STAR Calculated Tentative. With this change, it is crucial that providers follow the cost report instructions for recording interim lump sum and biweekly payments on the correct lines of Worksheet E-1. Failure to do so may result in an incorrect tentative settlement being issued. 

The automated calculation interfaces with the CMS financial system and will adjust to include/exclude lump sum payments that have not been recorded on the appropriate lines of Worksheet E-1. It is not appropriate to include lump sum payments in Worksheet E-1 Line 1. They should be reflected on the subscripts of lines 3 and 5. Additionally, payments should be recorded as they are issued – organized separately by date, Part A/Part B, and provider unit – not grouped together.

Corrected tentative settlements will not be initiated by National Government Services. The provider will need to file an amended cost report to correct Worksheet E-1 in order for an amended tentative to be considered.

Other provider types will start using this process in the near future.

Posted 7/29/2025