Medicare Financial Management Manual (Pub. 100-06), Ch. 2 § 170
Special One-Time Costs Associated With Non-Continuation of the
170 - Special One-Time Costs Associated With Non-Continuation of the
Medicare Contract - (Rev. 2, 08-30-02)
A1-1382, B1-4382
Special one-time costs associated with a contractor leaving the program are not handled
through the normal budget and cost reporting process. Instead, these costs, which may
include severance pay for employees or penalty payments for terminating contracts, are
handled through a separate voucher process subsequent to submission and approval of a
budget request. The voucher should state the period of time covered and itemize the
expenses. CMS reviews the voucher and determines whether payment should be made.
Approved vouchered costs are paid separately by check or EFT and not through the
NOBA process.