Cost Allocation Methodology Appendix Sample Clauses

Cost Allocation Methodology Appendix. Applicants are to include an appendix on the methodology used to support the cost allocation plan that is distinct from the budget narrative. This appendix should include the 1) overall methodology and 2) a chart that identifies the overall project costs, Medicaid/CHIP costs, Exchange costs, and shared services costs. Enter funds that have been allocated to the State, Medicaid, the Exchange, CHIP, and any other program and include a list of federally-funded human services programs to which the OMB Circular A-87 exception applies. Guidance: As explained in Section III.2, Eligibility Information, States must cost allocate among Medicaid, CHIP, and any other federally financed or state financed programs, as required under 2 CFR Part 225, Appendix C. In the case of Exchanges, the State Medicaid and CHIP programs are direct beneficiaries of many of the activities of the Exchange, particularly IT systems and related systems and staffing involved with determining an applicant’s eligibility for the Medicaid and CHIP programs. Consequently, the costs associated with these activities MUST be paid through a separate funding request to the Centers for Medicare & Medicaid Services. The funding request is in the form of an Advance Planning Document (APD) that specifically requests funding for each of these activities that benefit Medicaid and CHIP and applies the appropriate Federal Financial Participation (FFP) rate of 50, 75 or 90 percent. Funds under this Cooperative Agreement cannot be used to pay for Medicaid and/or CHIP costs, nor can they be used to pay the State share of the Medicaid and CHIP allocated costs. The goods and services that are to be allocated to, and paid for by, the State Medicaid and CHIP programs are of two types: direct and indirect; each type is handled differently. Direct expenses are those that benefit Medicaid and/or CHIP exclusively. These direct expenses are allocated 100% to the Medicaid and/or CHIP program and matched at the appropriate FFP rate. Indirect expenses are those that benefit Medicaid, CHIP and other programs, including the Exchange itself. One such example would be staffing salaries for those individuals who serve both Medicaid’s and CHIP’s needs as well as the Exchange’s. These indirect expenses are allocated to the benefiting programs in proportion to Medicaid or CHIP anticipated duplicated recipient count served by the Exchange. The agency may propose for federal consideration alternative allocation methods as long as the...

Cost Allocation Methodology Appendix. For details regarding the cost allocation methodology, please see Appendix G: Cost Allocation Methodology.