Principles of Payments

10.3 - Principles of Payments (Rev. 4, 10-01-01) Cost-based HMO/CMPs are paid each month, in advance, an interim rate for each Medicare enrollee. Retroactive adjustments are made during the year and at the end of the contract period to reconcile the interim payments made to the HMO/CMP with the amount determined payable to the HMO/CMP for services rendered to the HMO/CMP's Medicare enrollees during that period. Total reimbursement is calculated on the HMO/CMP's final certified cost report.