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DocuSign Envelope ID: 262ABA18-5354-4F41-9508-9613C8ACBMD <br />4.5.3. Calculation and application of the pertinent MER; <br />4.5.4. Calculation and application of the indirect cost rate; and <br />4.5.5. Application of the appropriate FFP rate. <br />4.6. Cost Pool Construction <br />4.6.1. The Contractor must comply with all federal, state, HCA and CMS <br />Regulations, the CAP, Manual, and this Agreement when constructing cost <br />pools. <br />4.6.2. The Contractor is prohibited from including any unallowable costs in any cost <br />pool. <br />4.6.3. The Contractor must include all costs used to calculate the FFP <br />reimbursement to one of these six (6) cost pools: <br />4.6.3.1. Cost Pool 1: MAC SPMP; <br />4.6.3.2. Cost Pool 2: MAC Non-SPMP; <br />4.6.3.3. Cost Pool 3a and 3b: Non -MAC; <br />4.6.3.4. Cost Pool 4: MAC Direct Charge — enhanced; <br />4.6.3.5. Cost Pool 5: MAC Direct Charge — non-enhanced; and <br />4.6.3.6. Cost Pool 6: Allocated. <br />4.6.4. Costs included in the calculation of an indirect cost rate are prohibited from <br />being assigned to any of the six cost pools except by application of the <br />indirect cost rate. <br />4.6.5. All costs assigned to each cost pool must be allowable and comply with the <br />descriptions in the CAP and Manual. <br />4.7. Calculating Allowable Medicaid Administrative Time <br />The Contractor must: <br />4.7.1. Use only the RMTS or the Direct Charge method to calculate the percent of <br />reimbursable time. <br />4.7.2. Use the RMTS for all eligible staff who are not certified as a Single Cost <br />Objective. <br />4.7.3. Use the RMTS results produced by the System. <br />4.7.4. Will not alter the RMTS results and will certify the accuracy of the data by <br />signing the A19 by an authorized Contractor representative. <br />Washington State Page 42 of 53 HCA IAA K4649 <br />Health Care Authority Revised 1012020 <br />