Medicare Managed Care Manual (Pub. 100-16), Ch. 4 § 90.3.3
Payment for NCD Items and Services
90.3.3 – Payment for NCD Items and Services
(Rev. 121, Issued: 04-22-16, Effective: 04-22-16, Implementation: 04-22-16)
Chapter 8 of the MMCM, “Payments to Medicare Advantage Organizations,” contains the
detailed rules on payment for NCD items and services or legislative changes in benefits
that meet the significant cost threshold. That manual chapter includes a description of
services for which MAOs are responsible. Enrollees are responsible for any applicable
coinsurance amounts under original Medicare.
Once the annual MA capitation rate, or other payment adjustment, reflects the new costs,
the service or benefit is considered included in the MAO’s contract with CMS and is a
covered benefit under the contract. The MAO must furnish, arrange, or pay for the NCD
service or legislative change in benefits, subject to all applicable rules. MAOs may
establish separate plan rules for these services and benefits, subject to CMS review and
approval. CMS may, at its discretion, issue overriding instructions limiting or revising the
MA plan rules, depending on the specific NCD or legislative change in benefits. For
these services or benefits, the enrollee is responsible for any MA plan cost-sharing, as
approved by CMS or unless otherwise instructed by CMS.