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provider-specific data. (Eff. 10/9/2021, Register 240) Statutory Authority: Authority: AS 47.05.010 AS 47.07.040 AS 47.07.085 7 AAC 145.780. SEMT cost reconciliation and settlement process. (a) The department will adjust the cost report submitted by the provider for costs based on financial documentation provided during the desk review process, and to revenues and medical transports based on the reconciliation results from the most recently retrieved report from the Medicaid Management Information System (MMIS) described in 42 C.F.R. 433.111(b). (b) The cost associated with a dry run is not eligible for FFP and is not an eligible expenditure. The SEMT administrative fee in 7 AAC 145.790 is not eligible for FFP and is not an eligible expenditure. (c) All financial and medical transport information must be based on an accrual method of accounting and the participating provider must comply with generally accepted accounting principles (GAAP). Revenue must be reported in the period earned, regardless of when payment was received. Expenses must be reported in the period in which incurred. (d) To determine the final supplemental payment, the department will perform cost settlements based on the final SEMT cost report for all participating providers using the following formula:

(1) the sum of a participating provider’s allowable direct and indirect costs for ground, air, and water medical transport services will be divided by the number of medical transports, separated into ground, air, and water services by the service-specific components, to determine a participating provider’s average cost per medical transport for each ground, air, or

(2) the average cost per medical transport for each ground, air, or water service will be multiplied by the number of qualifying Medicaid fee-for-service emergency medical transports by Medicaid fund type, described in 7 AAC 145.750(d), to determine allowable Medicaid emergency medical transportation costs per Medicaid fund type;

(3) the allowable Medicaid emergency transportation costs will be offset by Medicaid revenue for fee-for-service, third party liability emergency medical transports, and the interim payment for the service year in which the interim supplemental payment is made for each Medicaid fund type for emergency medical transports, to calculate the Medicaid emergency