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TeachMeFinance.com - explain Reasonable Cost Reasonable Cost The term 'Reasonable Cost ' as it applies to the area of Medicare in the United States can be defined as ' FIs and carriers use CMS guidelines to determine reasonable costs incurred by individual providers in furnishing covered services to enrollees. Reasonable cost is based on the actual cost of providing such services, including direct and indirect cost of providers and excluding any costs that are unnecessary in the efficient delivery of services covered by the program'. Previous 5 Terms: Real-Time Real-Wage Differential Rear Flank Downdraft Rear Projection TV Set reasonable Next 5 Terms: reasonable estimations Reasonable-Cost Basis Reasonably assured resources (RAR) reasoning (mathematical) reassortment 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.