Cost Reporting
Participating providers in the GEMT program are required to complete cost reports to determine reimbursement rates from the Center for Medicaid Services.
Cost reports are critical in ensuring financial transparency, equitable reimbursement, and alignment with Medicaid's cost-efficiency goals.
We recommend that interested providers complete a cost report for the following reasons:
Determine Potential Reimbursement
While provider agencies may be able to estimate their potential GEMT reimbursement using a simplified equation, completion of a cost report is the best way to determine the agency’s potential reimbursement.
Demonstrate the Competency of Providers
A common excuse for not implementing GEMT in Michigan is lack of ability by providers to satisfactorily complete cost reports. Completing cost reports adhering with financial and operational standards will be key in demonstrating readiness by providers to the Michigan Legislature.
Administrative Preparation
Completing a cost report will give providers an understanding of the cost reporting process and help them identify team members best positioned to complete these reports. It will also enable providers to consider the costs and benefits of program participation.
Demonstrate Financial Viability
Medicaid programs often require providers to prove their financial stability and capability to deliver care efficiently. Cost reports help assess whether a provider has the necessary resources to participate sustainably in the program.