Allowable Costs

60 - Allowable Costs (Rev. 30, 09-05-03) Allowable costs are those direct and indirect costs, including normal standby costs, that the HCPP incurs and are proper and necessary to efficiently deliver needed health care. These costs include costs related to the care of beneficiaries that are normally paid by Medicare and other costs such as enrollment, membership, and similar costs unique to Medicare HCPPs and necessary to the HCPP's operations. The allowable costs of an HCPP are first determined in accordance with the principles set forth in 42 CFR Part 417 Subpart U and this manual. After those requirements are met, the Medicare principles of reimbursement as described in the Provider Reimbursement Manual (Pub. 15) are applicable if they are not in contradiction with the regulation and this manual. In addition, Generally Accepted Accounting Principles (GAAP) should be followed if instructions in the regulation or manuals do not instruct the HCPP otherwise.