Accounting for Allowable Cost Reimbursement | Not for Profit Accounting | CPA Exam

Cost-based provider reimbursement" refers to a common payment method in health insurance. Under cost-based reimbursement, patients' insurance companies make payments to doctors and hospitals based on the costs of the care provided to the patients. However, insurers that use cost-based reimbursement won't pay for anything and everything. They pay only "allowable costs," those defined as covered in the policy

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