gation with subscribers or providers of health services.

§ 16-15.203 Indirect costs.

The provisions of FPR 1-15.203 apply to the allocation of general and administrative type costs by means of a "dividend formula".

§ 16-15.205 Selected costs.

§ 16-15.205-1 Advertising.

(a) In applying the provisions of FPR 1-15.205-1 to charges for media messages, the cost of those announcements, the primary effect of which is to to disseminate information on health care cost containment or preventive health care, will be allowable, subject to advance approval by the Contracting Officer as to the total amount per year, insofar as the costs of the messages are allocated to all underwritten and non-underwritten lines of business. However, cost of messages which are intended to, or which have the primary effect of, calling favorable attention to the contractor (or subcontractor) for the purpose of enhancing its overall image, or to sell its health plan, will be disallowed.

(b) The cost of media messages which are directed at advising current FEHBP subscribers on how to obtain benefits shall be an allowable expense within the meaning of FPR 1-15.205-1 since this service is directly related to performance of the FEHBP contract. If there is any question regarding the allowability of such a cost, the carrier may request an advance approval regarding the content and cost of the message.

§ 16-15.205-2 Bad debts.

The chargeability of erroneous benefit payments, overpayments and duplicate payments directly attributable to performance of the FEHBP contract shall be determined in accordance with the specific terms of the FEHBP contract. These erroneous benefit payments do not come within the intent of FPR 1-15.205-2.