42 C.F.R. § 417.524   Payment to HMOs or CMPs: General.


Title 42 - Public Health


Title 42: Public Health
PART 417—HEALTH MAINTENANCE ORGANIZATIONS, COMPETITIVE MEDICAL PLANS, AND HEALTH CARE PREPAYMENT PLANS
Subpart N—Medicare Payment to HMOs and CMPs: General Rules

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§ 417.524   Payment to HMOs or CMPs: General.

(a) Basic rule. The payments that CMS makes to an HMO or CMP under this subpart and subparts O and P of this part for furnishing covered Medicare services are in place of any payment that CMS would otherwise make to a beneficiary or the HMO or CMP under sections 1814(b) and 1833(a) of the Act.

(b) Basis of payment. (1) CMS pays the HMOs or CMPs on either a reasonable cost basis or a risk basis depending on the type of contract the HMO or CMP has with CMS.

(2) In certain cases a risk HMO or CMP also receives payments on a reasonable cost basis for certain Medicare enrollees who retain nonrisk status, as provided in §417.444, after the HMO or CMP enters into a risk contract.

[60 FR 46229, Sept. 6, 1995]

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