The Prompt Cost Report Reimbursement Act aims to improve the reimbursement process for critical access hospitals participating in the Montana Medicaid program. Currently, these hospitals face delays in receiving reimbursements due to the practice of waiting for final audits by Medicare administrative contractors before settling cost reports. This bill seeks to align Montana Medicaid's procedures with those of Medicare by instituting a prompt initial settlement upon the submission of cost reports, followed by adjustments after audits. The Department of Public Health and Human Services will be required to perform a tentative retroactive adjustment upon receiving a cost report and make interim settlements within 240 days.

Additionally, the bill includes an appropriation of $33,900 for the fiscal year beginning July 1, 2025, and $7,500 for the fiscal year beginning July 1, 2026, to support the settlement of these cost reports. It also establishes a retroactive applicability date, allowing the new procedures to apply to cost reports submitted prior to the effective date of the act. This legislative change is intended to ensure timely and accurate reimbursements for critical access hospitals, thereby enhancing fiscal management within the Montana Medicaid program.