SMD: Tri-Agency Letter on Cost Allocation Requirements Set Forth in OMB Circular A-87

Today the U.S. Departments of Health and Human Services (HHS) and Agriculture (USDA) released additional guidance to states on the OMB Circular A-87 cost allocation exception. The letter extends the timeline previously established in the August 10, 2011, guidance letter for three additional years and provides additional guidance on how states may take advantage of the exception and the extended timeframe to leverage these investments to better serve consumers’ multiple programs and needs.

The letter is available on Medicaid.gov at http://www.medicaid.gov/federal-policy-guidance/federal-policy-guidance.html