Medicare Managed Care Manual (Pub. 100-16), Ch. 16a § 70.3.2
Payment Rules for Direct-Contracting Providers
70.3.2 - 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. The plan may also vary the payment rates among the direct-
contracting providers within a particular category of Part A or Part B service.
• The payment rates for direct-contracting providers may be higher, lower, or equal
to the Original Medicare rates.
• 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.