The five parts of Worksheet E-3 are used to calculate reimbursement settlement: 2025

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Order of Allocation: Under the step-down method, services rendered by certain non-revenue-producing departments or centers are utilized by certain other non-revenue-producing centers, as well as by the revenue-producing centers.
The Medicare program refers to this as the step-down cost-finding process. Under step-down cost finding, any general service cost center (defined below) can be stepped down to any other general service cost center, revenue-generating cost center, or non-reimbursable cost center.
In 2025, your yearly out-of-pocket drug costs will be capped at $2,000. If you have Medicare drug coverage (Part D) and your drug costs are high enough to reach this cap, you dont have to pay a copayment or coinsurance for Part D drugs for the rest of the calendar year.
The step-down method is also called the sequential method. This method allocates the costs of some service departments to other service departments, but once a service departments costs have been allocated, no subsequent costs are allocated back to it. The choice of which department to start with is important.
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