---
kind: "section"
citation: "42 C.F.R. § 417.552"
title: "42"
number: "417.552"
heading: "Cost apportionment: General provisions."
url: "https://uscodex.org/cfr/42/417.552"
---

# §417.552. Cost apportionment: General provisions.

- (a) **Basic rule.** The HMO or CMP must apportion its total allowable direct and indirect costs among its Medicare enrollees, its other enrollees, and its nonenrolled patients—
  - (1) In accordance with this subpart; and
  - (2) **Using methods approved by CMS.**
- (b) **Purpose of apportionment.** The purpose of apportionment is to ensure that—
  - (1) The cost of services furnished to Medicare enrollees is not borne by other enrollees and nonenrolled patients; and
  - (2) The cost of the services furnished to other enrollees and nonenrolled patients is not borne by Medicare.

## Notes

### Amendments

[50 FR 1346, Jan. 10, 1985, as amended at 58 FR 38082, July 15, 1993; 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

[50 FR 1346, Jan. 10, 1985, as amended at 58 FR 38082, July 15, 1993; 60 FR 46230, Sept. 6, 1995]