# Medicare Program; Clarification of Medicare's Accrual Basis of Accounting Policy
> **Centers for Medicare and Medicaid Services** · Final rule. · Published 1995-06-27 · Effective 1995-07-27 · 60 FR 33126
## Document
- **Document number:** 95-15341
- **Category:** medicare
- **Sub-agency:** Centers for Medicare and Medicaid Services
- **Federal Register citation:** 60 FR 33126
- **CFR reference:** 42 CFR 413
- **Publication date:** 1995-06-27
- **Effective date:** 1995-07-27
- **HHS docket:** BPD-366-F
## Abstract

This final rule revises the Medicare regulations to clarify the concept of ``accrual basis of accounting'' to indicate that expenses must be incurred by a provider of health care services before Medicare will pay its share of those expenses. This rule does not signify a change in policy but, rather, incorporates into the regulations Medicare's longstanding policy regarding the circumstances under which we recognize, for the purposes of program payment, a provider's claim for costs for which it has not actually expended funds during the current cost reporting period.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/1995/06/27/95-15341/medicare-program-clarification-of-medicares-accrual-basis-of-accounting-policy)
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