---
kind: "section"
citation: "42 C.F.R. § 441.472"
title: "42"
number: "441.472"
heading: "Budget methodology."
url: "https://uscodex.org/cfr/42/441.472"
---

# §441.472. Budget methodology.

- (a) The State shall set forth a budget methodology that ensures service authorization resides with the State and meets the following criteria:
  - (1) The State's method of determining the budget allocation is objective and evidence based utilizing valid, reliable cost data.
  - (2) **The State's method is applied consistently to participants.**
  - (3) **The State's method is open for public inspection.**
  - (4) The State's method includes a calculation of the expected cost of the self-directed PAS and supports, if those services and supports were not self-directed.
  - (5) **The State has a process in place that describes the following—**
    - (i) **Any limits it places on self-directed services and supports, and the basis for the limits.**
    - (ii) Any adjustments that will be allowed and the basis for the adjustments.
- (b) The State must have procedures to safeguard participants when the budgeted service amount is insufficient to meet a participant's needs.
- (c) The State must have a method of notifying participants, or their representative, if applicable, of the amount of any limit that applies to a participant's self-directed PAS and supports.
- (d) The budget may not restrict access to other medically necessary care and services furnished under the plan and approved by the State but not included in the budget.
- (e) The State must have a procedure to adjust a budget when a reassessment indicates a change in a participant's medical condition, functional status or living situation.

## Notes

### Source

Source: 73 FR 57881, Oct. 3, 2008, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302.

### Source

Source: 43 FR 45229, Sept. 29, 1978, unless otherwise noted.