Medicare Managed Care Manual (Pub. 100-16), Ch. 17b § 160
Enrollment and Marketing Costs
160 - Enrollment and Marketing Costs
(Rev. 4, 10-01-01)
Enrollment and marketing costs are those necessary and proper costs incurred in offering
the cost-based HMO/CMP to potential enrollees. These costs include selling, advertising,
and promotional activities incurred directly by the organization or under contract with
outside specialists. Enrollment and marketing costs are allowable to the extent they are
reasonable and do not exceed an amount that would be incurred by prudent and cost
conscious management.
These costs do not include membership costs (see §180) or special costs (see §200).