The EAPG weight set was developed, in cooperation with 3M, utilizing the claims submitted by providers for a 12-month base period, applying the applicable Cost to Charge Ratios on the individual provider Medicare Cost Report for the 12-month base period to determine the average cost to provide each covered service. The individual EAPG weight is based on the average cost for that EAPG code in comparison to the average cost for all the EAPGs. For example – EAPG 574 has an average cost of $163.09, the average cost of all EAPGs is $133.46. Based on this, the weight assigned to EAPG 574 would be 1.222 (163.09/133.46).