Capitalization Requirement (CAP)
The capitalization requirement is the Medicare enrollment rule requiring an enrolling home health agency to document sufficient initial reserve operating funds. “CAP” is informal shorthand used by some consultants; CMS generally calls it the capitalization requirement and addresses it in Form CMS-855A.
Definition
The capitalization requirement is the Medicare enrollment rule requiring an enrolling home health agency to document sufficient initial reserve operating funds. “CAP” is informal shorthand used by some consultants; CMS generally calls it the capitalization requirement and addresses it in Form CMS-855A.
Why it matters
The Medicare Administrative Contractor verifies that required funds remain available during enrollment and for three months after billing privileges are granted; inadequate documentation can delay or prevent enrollment.
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