CMS 2552-10 Transition to Automated Tentative Settlements

Effective July 14, 2025, all CMS Form 2552-10 cost reports received on or after this date will feature a redesigned Tentative Settlement (TS) letter. These calculations will now be automated through the System for Tracking Audit and Reimbursement (STAR), replacing the previous manual process. This automation applies to both as-filed and amended cost reports.

The new TS letters will incorporate payment data from the Healthcare Integrated General Ledger Accounting System (HIGLAS) for the applicable fiscal year end (FYE). All cost reports, whether submitted electronically or by mail, will be processed through STAR. TS letters will continue to be sent to each provider’s designated STAR contact, maintaining the existing communication protocol.

Important Guidance for Worksheet E-1 Reporting

With this transition, it is essential that providers follow the cost report instructions carefully when recording interim lump sum and biweekly payments on Worksheet E-1. Accurate reporting is critical to ensure correct tentative settlements.

Key requirements:

  • Do not record lump sum payments on Worksheet E-1, Line 1.
  • Lump sum payments must be reported on the subscripts of Lines 3 and 5.
  • Payments should be recorded as issued, organized separately by date, Part A or Part B, and provider unit, not grouped together.
  • The automated calculation interfaces with the CMS financial system and will only include or exclude lump sum payments if they are recorded correctly.
  • If a provider is submitting an amended cost report, they should also include previous tentative settlement amounts on Worksheet E-1. This ensures continuity and accuracy in the automated calculation process.

Failure to comply with these instructions may result in an incorrect tentative settlement.

If you have any questions, please contact our Provider Contact Center (PCC) for assistance.

Last Updated Aug 19 , 2025