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 Preadmission Screening and Resident Review (PASRR), the state Medicaid agency (SMA) is responsible for developing a CAP as part of the requirements for claiming the enhanced 75 percent match for PASRR-related activities.

These requirements are outlined in further detail in 45 CFR Part 95 Subpart E. Additional guidance may be requested from the Centers for Medicare & Medicaid Services (CMS) at PASRR_Institutional_Coverage@cms.hhs.gov or by contacting CMS PTAC.