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US · guidance

CMS Pub. 100-16, ch. mc86c18b, § 230

Alternative Method for Cost Report Treatment of Employer

activein force · 2026-08-25 – presentas-observed

Health Plans

(Rev. 30, 09-05-03)

In the case of benefits covered by an employer plan for a Medicare member who is also a

group member under the employer's plan, the Medicare HCPP may elect to identify the

cost or charge for the service covered under that plan. However, instead of specifically

identifying those services for which an employer health plan is primarily liable for

payment, the HCPP may elect to utilize a member month ratio to establish Medicare's

liability. This election must be made in writing at the time of a timely submitted budget.

In addition, this election must be made for the groups of Medicare beneficiaries subject to

the MSP provisions as described in this chapter.

Once the election is made, the election will remain in effect until it is revoked by the

HCPP in writing on a timely submitted budget.

35

The member month ratio is developed by dividing the Medicare member months by the

total Medicare member months. This ratio would then be applied to covered Medicare

service costs resulting in those costs for which Medicare is the primary payer.

History

(Rev. 30, 09-05-03)

Provenance

Source
cms.gov
Retrieved
2026-08-25
Edition
iom-2026-08-25
Content hash
b8b1a9916e6b5d9c1731a07261ff74f9d11c1ea8e8f0ece34fd338c5ddf24474
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