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TeachMeFinance.com - explain Cost Rate Cost Rate The term 'Cost Rate ' as it applies to the area of Medicare in the United States can be defined as ' The ratio of the cost (or outgo, expenditures, or disbursements) of the program on an incurred basis during a given year to the taxable payroll for the year. In this context, the outgo is defined to exclude benefit payments and administrative costs for those uninsured persons for whom payments are reimbursed from the general fund of the Treasury, and for voluntary enrollees, who pay a premium to be enrolled'. Previous 5 Terms: Cost of capital Cost of debt Cost of preferred stock Cost of retained earnings Cost of service Next 5 Terms: Cost Report Cost Sharing Cost, insurance, freight (CIF) costal Cost-Based Health Maintenance Organization About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.