Medicare Managed Care Manual (Pub. 100-16), Ch. 18c § 60
Apportionment of Administrative and General Costs Not Directly
60 - Apportionment of Administrative and General Costs Not Directly
Associated With Providing Medical Care
(Rev. 30, 09-05-03)
Enrollment and marketing costs (as defined in Chapter 18, Subchapter B, §50),
membership costs (as defined in Chapter 18, Subchapter B, §70), as well as other
administrative and general costs of the HCPP that benefit the total enrolled population of
the HCPP which are not directly associated with providing medical care, are apportioned
on the basis of a ratio of Medicare enrollment to total HCPP enrollment. These costs are
classified as Plan Administration costs. Examples of such costs are:
• Directors' salaries and fees;
• Executive and staff administrative salaries;
• Organizational costs; and
• Other costs of administering the plan.