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TeachMeFinance.com - explain Modified Average-Cost Method Modified Average-Cost Method The term 'Modified Average-Cost Method ' as it applies to the area of Medicare in the United States can be defined as ' Under this system of calculating summary measures, the actuarial balance is defined as the difference between the arithmetic means of the annual cost rates and the annual income rates, with an adjustment included to account for the offsets to cost that are due to (1) the starting trust fund balance and (2) interest earned on the trust fund'. Previous 5 Terms: Moderate Risk (of severe thunderstorms) Moderate-resolution Imaging Spectroradiometer (MODIS) Moderator Moderator temperature coefficient of reactivity Modification Decision Analysis (MDA) Next 5 Terms: Modified homogeneous earthfill dam Modified Mercalli scale Modified Sine Wave Modify Or Modification Modularity About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.