The PASRR Technical Assistance Center helps states fulfill the goals of Preadmission Screening and Resident Review

What are the components of a Cost Allocation Plan (CAP)?

A Cost Allocation Plan (CAP) is a narrative description of the procedures that a state will use in identifying, measuring, and allocating costs that it incurs in supporting programs it administers or supervises. In the case of PASRR, the State Medicaid Agency (SMA) is responsible for developing a CAP as part of the requirements for claiming the enhanced 75% match for PASRR-related activities. CAPs include the following elements:

1. Organizational chart showing placement of each unit in the state organizational chart

2. List of federal programs administered by each unit

3. Description of unit activities

4. Cost allocation methods

5. Estimated cost impacts of any changes to a previously approved CAP

6. A statement that costs claimed by non-State agencies are supported by written agreements

7. Cost allocation plans for local agencies (if applicable)

8. State certifications

9. Other information as required

These requirements are outlined in further detail in § 45 CFR 95 Subpart E


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