US Medical Term · billing
Cost-Based Fee
Tarifa Basada en Costos
In 9 languages
| Language | Term |
|---|---|
| English | Cost-Based Fee |
| Spanish (Español) | Tarifa Basada en Costos |
| Chinese (中文) | 基于成本的费用 |
| Korean (한국어) | 비용 기반 수가 |
| Vietnamese (Tiếng Việt) | Phí dựa trên chi phí |
| Filipino (Tagalog) | Bayad Batay sa Gastos |
| Portuguese (Português) | Taxa Baseada em Custos |
| Thai (ภาษาไทย) | ค่าธรรมเนียมตามต้นทุน |
| Japanese (日本語) | 原価ベースの報酬 |
What it means
A cost-based fee is a payment method used by Medicare and Medicaid to reimburse certain federally qualified health centers (FQHCs) and rural health clinics (RHCs). Instead of paying a fixed fee for each service, Medicare and Medicaid reimburse these facilities based on their actual, reasonable costs of providing care. This approach ensures that safety-net clinics serving low-income and rural populations receive enough funding to cover their operating expenses, even if the patient mix includes many uninsured or underinsured individuals. For patients, receiving care at a federally qualified health center means services are available on a sliding-fee scale based on income, and the facility is structured to serve those who might not afford care elsewhere.
How to say it
Sentences a patient might use with a doctor, nurse, pharmacist, or insurer:
The community clinic is reimbursed by Medicaid through a cost-based fee system.
La clínica comunitaria es reembolsada por Medicaid a través de un sistema de tarifa basada en costos.
Federally qualified health centers use a cost-based fee model to stay financially sustainable.
Los centros de salud calificados federalmente utilizan un modelo de tarifa basada en costos para mantenerse financieramente sostenibles.
My FQHC charges on a sliding scale, but Medicare pays them a cost-based fee.
Mi FQHC cobra en una escala variable, pero Medicare les paga una tarifa basada en costos.
Where you'll see it
Related terms
Sources
Last reviewed: September 2026