Special Cost Reporting Issues - (Rev. 2, 08-30-02)

40 - Special Cost Reporting Issues - (Rev. 2, 08-30-02) A1-1303, B1-4303 Shared system costs and CWF satellite costs for ongoing maintenance, as well as for the other costs of the user groups, e.g., travel, are to be allocated according to the following instructions. The general rule for allocating costs when more than one Medicare function/activity is affected is to allocate time and cost equitably to the activities benefiting from the related work. There are three generally acceptable approaches for allocating such costs. Charge ongoing costs to Activity 11001, Bills/Claims Processing, if the work primarily benefits that activity; Charge ongoing costs to the activities which benefit from the work, if the benefit can be demonstrated and is documented; or If the cost is small and the related work generally benefits all Medicare functions, it may be allocated to all Medicare activities using the same or similar methodology to that stated in chapter 1, §90.10, on overhead costs. Note that this is not a statement that such costs are an overhead cost, but only that such costs may be allocated in the same or similar manner.