Medicare Managed Care Manual (Pub. 100-16), Ch. 17b § 120
Physician Services- General
120 - Physician Services- General
(Rev. 4, 10-01-01)
Amounts paid by a cost-based HMO/CMP for physicians’ services are allowable to the
extent they are reasonable. Different tests of reasonableness apply, depending upon
whether the organization employs the physicians directly or pays for physicians’ services
on a fee-for-service basis or some other basis.
The allowability of physician and other Part B supplier services furnished directly is
determined in accordance with §130 of this subchapter.
The allowability of physician and other Part B supplier services furnished under
arrangements is determined in accordance with the provisions of §140 of this subchapter.