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June 2, 2018

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.

These requirements are outlined in further detail in § 45 CFR 95 Subpart E. Additional guidance may be given by the Centers for Medicare & Medicaid Services (CMS) Regional Office or contact the PASRR Technical Assistance Center.

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