State Operations Manual (Pub. 100-07), Ch. 4 § 4543
NAR/NATCEP
4543 - NAR/NATCEP
(Rev. 1, 05-21-04)
The allowable costs that can be charged to the Medicare State certification program for
activities involving NATCEP testing are outlined in §1819(e)(1) and (2) of the Act.
These costs relate to the State requirement to specify and review NATCEPs together with
establishing and maintaining a NAR. The State is required to conduct these activities as
part of its §1864 agreement as authorized by §1864(d) of the Act. The actual training and
competency evaluation testing of nurse aides is not paid under the §1864 agreement, and
therefore is not payable as part of this agreement.
All expenses incurred for title XVIII-only NATCEPs and the NAR are to be reported on
Form CMS-435 as a separate line item under Miscellaneous. The Medicare survey and
certification budget allows sufficient funds for this purpose.
Expenses incurred for title XIX-only facilities for NAR/NATCEP are considered
administrative costs and are to be reported on the “Quarterly Medicaid Statement of
Expenditures for the Medical Assistance Program,” Form CMS-64. There are no
provisions in the survey and certification budgets for these expenses.
Costs incurred in joint title XVIII/XIX facilities for NAR/NATCEP are to be split 50-50.
Report expenses incurred for title XVIII on Form CMS-435 and expenses for title XIX on
Form CMS-64.