42 CFR §438.812
- (a)Under a risk contract, the total amount the State agency pays for carrying out the contract provisions is a medical assistance cost.
- (b)Under a nonrisk contract—
- (1)The amount the State agency pays for the furnishing of medical services to eligible beneficiaries is a medical assistance cost; and
- (2)The amount the State agency pays for the contractor's performance of other functions is an administrative cost.