---
kind: "section"
citation: "42 C.F.R. § 417.550"
title: "42"
number: "417.550"
heading: "Special Medicare program requirements."
url: "https://uscodex.org/cfr/42/417.550"
---

# §417.550. Special Medicare program requirements.

- (a) **Principle.** CMS pays the full reasonable cost incurred by an HMO or CMP for activities that are solely for Medicare purposes and unique to Medicare contracts under [section 1876](/cfr/42/1876.md) of the Act.
- (b) **Application.** CMS pays the full reasonable cost of the following activities:
  - (1) **Reporting increases and decreases in the number of Medicare enrollees.**
  - (2) Obtaining independent certification of the HMO's or CMP's cost report to the extent that it is for Medicare purposes.
  - (3) **Reporting special data that CMS requires solely for program planning and evaluation.**
- (c) **Prior approval requirement.** The costs specified in [paragraph (b)](#b) of this section must be separately budgeted and approved by CMS before the contract period begins.
- (d) **Limit on full payment.** Full payment is limited to the costs specified in [paragraph (b)](#b) of this section. All other administrative costs must be apportioned in accordance with [§ 417.552](/cfr/42/417.552.md).

## Notes

### Amendments

[60 FR 46230, Sept. 6, 1995]

### Source

Source: 50 FR 1346, Jan. 10, 1985, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302 and 1395hh, and 300e, 300e-5, and 300e-9, and 31 U.S.C. 9701.

### Amendments

[60 FR 46230, Sept. 6, 1995]