Medicare Managed Care Manual (Pub. 100-16), Ch. 16a § 70.2.3
Payment Rules for Direct-Contracting Providers
70.2.3 - Payment Rules for Direct-Contracting Providers
(Rev. 99, Issued: 05-27-11, Effective: 05-27-11, Implementation: 05-27-11)
• The plan may establish payment rates for direct-contracting providers that are
different than the rates established in the terms and conditions of payment for
deemed providers.
• Since the plan meets the access to services requirement by paying all providers at
least the Original Medicare rates or higher, direct-contracting providers must also
be paid at least the Original Medicare rates or higher.
• The payment rates for direct-contracting providers must be established in the
signed contract or agreement between the plan and the provider.
• The payment rates can be provider-specific, and public disclosure of the rates is
not required.