April 2004

Safe Harbor vs. Documented Urban Rate – “Maximizing your Discount” (04/20/04)

The Rural Health Care Support Mechanism calculates telecommunications support using one of two methods: using only a mileage-based calculation, or by comparing the differences between urban and rural rates. Applicants may choose the method based on which is easier, or which provides the most support, according to their own circumstances. If you chose the urban/rural difference as a method of calculation, RHCD has provided urban rates for FY2004 to be used as “safe harbor” rates for individual states; however, applicants may provide their own urban rates.

In the event that your service is not listed, or you believe that you can document a lower urban rate (thereby increasing the supportable urban/rural difference), such as a multi-year discounted urban rate, please follow the guidelines in documenting a comparable urban rate detailed in our section, “About Urban Rates”.

Documentation must be submitted to RHCD if you are providing your own urban rate. Documentation may include tariff pages, contracts, a letter on company letterhead from the urban service provider, rate pricing information printed from the urban service provider’s web site, or similar documentation showing how the urban rate was obtained. Tariff pages should include annotations and carrier identification. Please include only summary pages, if possible.

Archived Announcements

Below are links to past announcements posted on this web site. Access previous announcements by clicking on a month listed below.