TeachMeFinance.com - explain Modified Average-Cost Method
Modified Average-Cost Method The term 'Modified Average-Cost Method ' as it applies to the area of Medicare in the United States can be defined as ' Under this system of calculating summary measures, the actuarial balance is defined as the difference between the arithmetic means of the annual cost rates and the annual income rates, with an adjustment included to account for the offsets to cost that are due to (1) the starting trust fund balance and (2) interest earned on the trust fund'.
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