{"data":{"id":"us/42-cfr-417.480","jurisdiction":"us","citation":"42 CFR 417.480","heading":"Maintenance of records: Cost HMOs and CMPs.","body":"A reasonable cost contract must provide that the HMO or CMP agrees to maintain books, records, documents, and other evidence of accounting procedures and practices that—\n(a) Are sufficient to—\n(1) Ensure an audit trail; and\n(2) Properly reflect all direct and indirect costs claimed to have been incurred under the contract; and\n(b) Include at least records of the following:\n(1) Ownership, HMO or CMP, and operation of the HMO's or CMP's financial, medical, and other recordkeeping systems.\n(2) Financial statements for the current contract period and three prior periods.\n(3) Federal income tax or information returns for the current contract period and three prior periods.\n(4) Asset acquisition, lease, sale, or other action.\n(5) Agreements, contracts, and subcontracts.\n(6) Franchise, marketing, and management agreements.\n(7) Schedules of charges for the HMO's or CMP's fee-for-service patients.\n(8) Matters pertaining to costs of operations.\n(9) Amounts of income received by source and payment.\n(10) Cash flow statements.\n(11) Any financial reports filed with other Federal programs or State authorities.","path":["Title 42—Public Health","CHAPTER IV—CENTERS FOR MEDICARE \u0026 MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES","SUBCHAPTER B—MEDICARE PROGRAM","PART 417—HEALTH MAINTENANCE ORGANIZATIONS, COMPETITIVE MEDICAL PLANS, AND HEALTH CARE PREPAYMENT PLANS","Subpart L—Medicare Contract Requirements"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-42.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:11Z","sha256":"848d514d741015db24ab5e92efb7179f1531bdc14133efb4189c7932cc92d3a9","source_id":"us-cfr","stale":true,"prev":"us/42-cfr-417.479","next":"us/42-cfr-417.481"},"notice":"GroundRules: Original legal text. Not legal advice."}