US · guidance
CMS Pub. 100-16, ch. mc86c18a, § 60
Allowable Costs
Allowable costs are those direct and indirect costs, including normal standby costs, that
the HCPP incurs and are proper and necessary to efficiently deliver needed health care.
These costs include costs related to the care of beneficiaries that are normally paid by
Medicare and other costs such as enrollment, membership, and similar costs unique to
Medicare HCPPs and necessary to the HCPP's operations.
The allowable costs of an HCPP are first determined in accordance with the principles set
forth in 42 CFR Part 417 Subpart U and this manual. After those requirements are met,
the Medicare principles of reimbursement as described in the Provider Reimbursement
Manual (Pub. 15) are applicable if they are not in contradiction with the regulation and
this manual. In addition, Generally Accepted Accounting Principles (GAAP) should be
followed if instructions in the regulation or manuals do not instruct the HCPP otherwise.
History
(Rev. 30, 09-05-03)
Provenance
- Source
- cms.gov
- Retrieved
- 2026-08-25
- Edition
- iom-2026-08-25
- Content hash
b4a743518e67a967e0098ca37d6d47ed796f0ce23da959cebbd07952004c3206
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