### Question
Can you define what adjusted average per capita cost means?


### Answer
**Adjusted average per capita cost** is defined as the following in *42 U.S.C. § 1395mm*:

> the average per capita amount that the Secretary estimates in advance (on the basis of actual experience, or retrospective actuarial equivalent based upon an adequate sample and other information and data, in a geographic area served by an eligible organization or in a similar area, with appropriate adjustments to assure actuarial equivalence) would be payable in any contract year for services covered under parts A and B of this subchapter, or part B only, and types of expenses otherwise reimbursable under parts A and B of this subchapter, or part B only (including administrative costs incurred by organizations described in sections 1395h and 1395u of this title), if the services were to be furnished by other than an eligible organization or, in the case of services covered only under section 1395x(s)(2)(H) of this title, if the services were to be furnished by a physician or as an incident to a physician's service

#### Citation:
  - *42 U.S.C. § 1395mm*
  - Heading: **CHAPTER 7-SOCIAL SECURITY > SUBCHAPTER XVIII-HEALTH INSURANCE FOR AGED AND DISABLED > Part D-Miscellaneous Provisions**

