Medicare Financial Management Manual (Pub. 100-06), Ch. 1 § 490.2
Cost Sharing - (Rev. 1, 08-30-02)
490.2 - Cost Sharing - (Rev. 1, 08-30-02)
A1-1603.2
The costs incurred in auditing providers performing services for more than one of the
above programs are to be shared on the basis of the amount of reimbursement (benefits
paid) to individual providers by the respective programs.
Any proposed modification to this method of sharing costs of audit will be evaluated on
the basis of its merits. Alternative methods proposed should adhere to the basic principle
that audit dollars are expended to protect the integrity of benefits paid.
Costs to be shared include all costs incurred from the point of securing the cost report
from the provider through the publishing and distribution of the audit findings (or cost
settlement data where no audit is performed). If final settlement is included in the
common audit program, these costs should also be shared.
There have been some questions concerning the definition of reimbursement (benefits
paid). Reimbursement by the program means the dollar amounts of payments made from
program funds at final settlement and should include payments to providers for inpatient
and outpatient services and, if applicable, combined physician billing.