Alternate Allocation and Apportionment Methods

120 - Alternate Allocation and Apportionment Methods (Rev. 17, 01-01-03) A method of apportionment or basis for allocation of costs other than the methods prescribed in this chapter may be used, provided the desired change results in a more accurate and equitable apportionment or allocation of costs and is justifiable from an administrative cost standpoint. An HMO/CMP that desires to use an alternative method of apportionment or basis for allocation of costs, which represents a departure from the method used in the previous cost reporting period, must submit its request to CMS in writing at least 90 days prior to the beginning of the period in which the different method or basis of allocation is to be used. The HMO/CMP’s request would state the specific change it desires and explain how this will result in a more accurate and equitable apportionment or allocation. CMS’s approval of a request to change methods will be given to the cost-based HMO/CMP in writing and is binding as of the approval date. Once approval is given, the HMO/CMP is bound to this method for the cost reporting period to which the request applies and all subsequent periods, unless CMS approves a subsequent request to change methods.