Limitations on Costs

250 - Limitations on Costs (Rev. 4, 10-01-01) The limitations on cost provisions contain special rules for evaluating allowable provider costs that apply in addition to certain Medicare reimbursement principles. Specifically, these rules deal with the cost limits that apply to hospitals exempt from PPS. The rules do not apply to hospitals, SNFs, and HHAs paid under PPS. For a detailed discussion of the limitation on costs provision, see Chapter 25 of the “Provider Reimbursement Manual” (Pub. 15), Part I.