Fiscal Soundness Reporting Requirements (FSRR)

Medicare Advantage Organizations (MAO), Medicare-Medicaid Plans (MMP), Section 1876 Cost Plans, Programs of All-Inclusive Care for the Elderly (PACE) organizations, and Prescription Drug Plan (PDP) Sponsors that contract with the Centers for Medicare & Medicaid Services (CMS) must comply with the Fiscal Soundness Reporting Requirements (FSRR). These organizations are required to satisfy all applicable state licensure, state and CMS financial requirements, and to submit their independently audited financial statements to CMS on an annual basis.

CMS monitors compliance with fiscal soundness requirements through audited annual financial statements of the organization’s legal entity and other required documentation submitted through the CMS Fiscal Soundness Module (FSM) in the Health Plan Management System (HPMS).

This page contains the FSRR instructions for the above organizations, which are updated annually. Organizations are required to submit to CMS independently audited annual financial statements, and any required quarterly financial statements by certain dates based on the organization’s fiscal year end. Guidance on the submission deadlines is provided in the FSRR instructions.

In addition to the FSRR, the FSM Plan User Guide provides valuable instructions describing how to access and upload the required materials in the FSM in HPMS. Other guidance documents, along with the Subordinated/Guaranteed Debt Attestation Form and instructions for PACE organizations and Section 1876 cost plans are provided below.