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CMS Proposes New Medicare Advantage and Prescription Drug Plan Rule

Client Alert | 1 min read | 05.09.08

CMS issued today a proposed rule that would affect Medicare Advantage Organizations and Prescription Drug Plan Sponsors. The proposed rule would incorporate into regulation a number of requirements that CMS previously imposed through operational guidance and is based on "lessons learned since 2006." Among other changes, the proposed rule would impose new restrictions on MA marketing and sales activities including commission structures. The proposed rule would also codify CMS' guidance on best available evidence to determine low income subsidy eligibility, impose additional requirements on Special Needs Plans to ensure the plans focus on the needs of their target population, and expand CMS’ flexibility in determining penalties against Medicare Advantage Organizations and Prescription Drug Plan Sponsors.

A copy of the proposed rule has been submitted for publication in the Federal Register and is available on CMS’ website. Comments must be submitted by 5:00 pm ET on July 15, 2008.

Insights

Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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