1728-94 HHA Transmittals
The Medicare Cost Report changes frequently. Health Financial Systems keeps users informed in several different ways; e-mails, live web-ex sessions, news blogs, user meetings and our website. This page gives information about the details of such transmittals.


1728-94 Approval Letter
1728-94 T-17 from CMS Website

HHA Transmittal 17
The HHA, 1728-94 system was updated to Transmittal 17 by CMS, in October 7, 2016. Transmittal 17 is effective for cost reporting periods beginning on or after October 1, 2015. HFS was approved for Transmittal 17 on January 30, 2017 and anticipates the release of updated software February 10, 2017.

Transmittal 17 was issued to implement the statutory requirement for hospice payment reform in ยง3132 of the Patient Protection and Affordable Care Act (ACA) and to incorporate data previously reported on the Provider Cost Report Reimbursement Questionnaire, Form CMS-339.

Changes include:

  • Addition of Worksheet S-2-1, to include questions previously required in Form CMS-339.
  • Removed obsolete Worksheets S-6 and J-1 through J-4.
  • Removed obsolete Worksheets RH-1 through RH-2.
  • Removed obsolete Worksheets FQ-1 through FQ-2.
  • Addition of Worksheets S-5 Parts III & IV and Worksheets O through O-8 for any HHA based hospice with a cost reporting period beginning on or after October 1, 2015 AND ENDING on or after September 30, 2016.
  • Effective for cost reporting periods beginning on or after October 1, 2014, HHA-based FQHCs will be required to complete a separate Form CMS-224-14.



HHA Transmittal 16
The HHA, 1728-94 system was updated to Transmittal 16 by CMS, in May 2013. Transmittal 16 is effective for FY Beginning on or after 10/1/2012, for the Bad Debt changes (i.e. all FYB on or after 10/1/2012 MUST use Transmittal 16).

  • HFS was approved for Transmittal 16 on 8/20/2013.
  • Transmittal 16 was primarily to implement the Bad Debt reduction changes as of FY Begin 10/1/2012, and the 2% Sequestration reduction for services on or after 4/1/2013. Sequestration will be computed as days on or after 4/1/2013 divided by total days in the FY, times 2%. Thus, 6/30/2013 FYE would have about a half percent reduction. The Bad Debt reduction is 12% for FY Begin 10/1/2012 to 9/30/2013; 24% for FY Begin 10/1/2013 to 9/30/2014; and 35% for FY Begin 10/1/2014 and after.
  • Bad Debts are not applicable for the HHA component, but DO APPLY for an HHA based CMHC (Worksheet CM-3), or an HHA based RHC/FQHC(Worksheet RF-3). Sequestration applies to all components.
  • The Sequestration reduction is computed on Worksheet D, Part II, line 26, as 2% of the sum of lines 25 and 25.50; CM-3 line 23(2% of line 22); or RF-3, line 24.01(2% of line 24).
  • The Bad Debt reduction is computed on Worksheet CM-3, line 17.01; and on RF-3, line 22.01.
  • CMS clarified in Transmittal 16, the rounding standards to compute the Sequestration reduction.
  • CMS activated Transmittal 16, Worksheet D, Part II, line 26, to accommodate the 2% Sequestration reduction.
  • CMS added(codified) in Transmittal 16, Worksheet S-4, Part I, line 16, column 3, to capture the Total Visits performed by Interns & Residents, to facilitate the calculation of GME pass through cost. This was already in the HFS system, per a CMS interim communication.
  • CMS added(codified) Worksheet RF-2, lines 7.01(Medical Nutrition Therapist) and 7.02(Diabetes Self-Management Training). This was already in the HFS system, per a CMS interim communication.
  • CMS added in Transmittal 16, Worksheet S, Part I, line 8.51 to determine if an approval was granted for an exception to the Productivity Standards.
  • CMS added in Transmittal 16, Worksheet CM-3, Part II, lines 17.01 and 17.02, to implement the Bad Debt reduction.
  • CMS added in Transmittal 16, Worksheet RF-3, lines 22.01 and 22.02, to implement the Bad Debt reduction.
  • CMS clarified in Transmittal 16, various portions of the Electronic Specifications, which are to be followed by all Vendors.
  • HFS' current version for the HHA is 16.0, posted 9/6/2013.