Medicare Managed Care Manual (Pub. 100-16), Ch. 17b § 150.1
Payment for Services Rendered On or After April 1, 1994, by
150.1 - Payment for Services Rendered On or After April 1, 1994, by
Noncontracted Medicare Participating Physicians
(Rev. 4, 10-01-01)
The limit of the HMO/CMP’s liability for services rendered by a physician with whom it
does not contract depends on whether the physician is a Medicare participating physician
(i.e., has agreed to accept assignment on all Medicare claims submitted to Medicare). The
Medicare participation agreement is deemed to apply to such a physician’s services in the
sense that the physician may not bill the HMO/CMP, the beneficiary, or any other party
for any amount in excess of the Medicare allowed amount (the fee schedule amount or
the actual charge, if lower).
However, the HMO/CMP has financial responsibility for the amount that would have
been the beneficiary’s liability in FFS Medicare (the 20 percent coinsurance and any
unmet deductible).
NOTE:
The financial responsibility of the HMO/CMP applies only when the
services are covered by the HMO/CMP, i.e., for emergency or urgently
needed services or when the HMO/CMP refers the enrollee to the non-
network physician.