42 CFR § 417.552 - Cost apportionment: General provisions.

§ 417.552 Cost apportionment: General provisions.

(a)Basic rule. The HMO or CMP must apportion its total allowable direct and indirect costs among its Medicare enrollees, its other enrollees, and its nonenrolled patients -

(1) In accordance with this subpart; and

(2) Using methods approved by CMS.

(b)Purpose of apportionment. The purpose of apportionment is to ensure that -

(1) The cost of services furnished to Medicareenrollees is not borne by other enrollees and nonenrolled patients; and

(2) The cost of the services furnished to other enrollees and nonenrolled patients is not borne by Medicare.

[50 FR 1346, Jan. 10, 1985, as amended at 58 FR 38082, July 15, 1993; 60 FR 46230, Sept. 6, 1995]