Treatment of Administrative Cost of Furnishing Information to

460.2 - Treatment of Administrative Cost of Furnishing Information to State Agencies (Rev. 33, 2-6-04) A1-1602.2, 4602.2 Until CMS consolidates the Medicaid claims crossover process under its Coordination of Benefits Contractor (COBC), the contractor shall charge the administrative costs incurred in furnishing billing information for Federal grants-in-aid program purposes, including the cost of transfer, to the title XVIII program in the appropriate departments. It shall treat amounts collected from State agencies for information furnished on hardcopy where the State has the systems capacity to process electronic data as a credit to Medicare. It shall report this on Form CMS-1523B/1524B in the credit section. The contractor shall deposit in its regular bank account amounts collected from State agencies for additional services performed. It shall clearly identify those funds as to source and purpose to facilitate auditing. The funds must be deposited in the regular bank account because the cash outlay for the cost of furnishing billing/claims information comes initially from this account.