What characterizes a retrospective reasonable cost system?

A retrospective reasonable cost system is characterized by reimbursement based on reported actual charges after care has been provided. In this system, healthcare providers report their incurred costs associated with delivering services, and reimbursement is determined based on these reports. This means that the payments reflect the true cost of care rather than estimates or predictions made beforehand.

In contrast to other reimbursement methodologies, such as prospective payment systems, where payments are predetermined and based on expected costs, a retrospective system allows providers to receive compensation for the actual resources used, ensuring that they are reimbursed fairly according to the services rendered. This aligns with the goal of accurately reflecting the expenditures related to patient care.

The other options describe methodologies that are not characteristic of a retrospective reasonable cost system, such as payments made based on predictions prior to care or estimates for services that may not fully capture the actual costs incurred.