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Examples of out-of-pocket payments involved in cost sharing include copays, deductibles, and coinsurance. In accounting, cost sharing or matching means that portion of project or program costs not borne by the funding agency. It includes all contributions, including cash and in-kind, that a recipient makes to an award.
A cost-sharing problem is defined by the following functions, where i is an agent and S is a subset of agents: Value(i) = the amount that agent i is willing to pay in order to enjoy the service. Cost(S) = the cost of serving all and only the agents in S. E.g., in the above example Cost({Alice,George})=9000.
For example, in 2007 RAND researchers reviewed the literature published between 1985 and 2006 on prescription drug cost sharing, which included co-payments, tiering, coinsurance, pharmacy benefit caps or monthly prescription limits, formulary restrictions, and reference pricing. [18]
Michigan’s Tri-Share program represents a cost-sharing approach where the state, the employer and the employee each pay for one-third of child care.
This cost is denoted Cost[C,L]. The cost of serving a group of consumers is lower than the sum of the cost of serving each consumer alone. EXAMPLE: There are two facilities, F1 which costs 2 and F2 which costs 2. There are three consumers, Alice Bob and Carl. Alice can be served only from F1, with cost 2. So the cost of serving her alone is 2+2=4.
The United States and South Korea on Friday announced a new cost-sharing deal that would see Seoul spend more to host American troops. State Department spokesperson Matthew Miller said the ...
Multi-component enterprises may find significant business advantage to sharing the costs of developing or acquiring certain assets, particularly intangible assets. Detailed U.S. rules provide that members of a group may enter into a cost sharing agreement (CSA) with respect to costs and benefits from the development of intangible assets. [68]
The first Scanlon plan was instituted by Joseph N. Scanlon (1897–1956) a steelworker, cost accountant, professional boxer, local union president, Acting Director of the Steelworkers Research Department, and Lecturer at the Massachusetts Institute of Technology (MIT). As the local union president of the steel mill in which he was employed, he ...
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