Cost Apportionment for Cost-Based Health Maintenance

10 - Cost Apportionment for Cost-Based Health Maintenance Organization and Competitive Medical Plans (HMO/CMPs) (Rev. 4, 10-01-01) The term apportionment, as used here, refers to the process of distributing allowable costs among various groups of cost-based HMO/CMP patients. This chapter sets forth instructions for apportionment of the total allowable direct and indirect costs of the cost- based HMO/CMP among Medicare beneficiaries enrolled in the HMO/CMP, other enrollees, and any non-enrolled patients. Certain costs incurred by HMO/CMPs for the purpose of meeting special Medicare program requirements are separately identified and paid in full by Medicare. These are discussed in Chapter 17, Subchapter B.