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Employee Benefits > Adjusted Annual Per Capita Cost (AAPCC)

The following information is about Adjusted Annual Per Capita Cost (AAPCC).

Adjusted Annual Per Capita Cost (AAPCC) Defined

The basis of payment for Medicare-risk HMOs, the AAPCC is a yearly projection of program spending in Medicare's fee-for-service program. Medicare pays HMOs 95% of the AAPCC for each enrolled Medicare beneficiary, adjusted for such factors as geographic cost differences (by county), age, sex and disability status.

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